National SC ST Hub Scheme provides SC/ST entrepreneurs with training, financial assistance, and government procurement support to promote inclusive growth.
National Scheduled Caste and Scheduled Tribe Hub (NSSH) Scheme: Empowering SC/ST Entrepreneurs
Introduction: Transformational Initiative for Inclusive Growth
The National Scheduled Caste and Scheduled Tribe Hub (NSSH) Scheme is a flagship initiative of the Ministry of Micro, Small & Medium Enterprises (MSME) designed to empower Scheduled Caste (SC) and Scheduled Tribe (ST) entrepreneurs across India. Launched in October 2016 and recently reinforced with intensified implementation, the NSSH Scheme aims to create a more inclusive MSME ecosystem by addressing historical economic disparities faced by SC/ST communities and actively enabling their participation in business and public procurement.
This government measure supports SC/ST-owned micro and small enterprises (MSEs) by providing capacity building, financial assistance, market access, and professional handholding—ensuring that they not only enter the marketplace but also thrive competitively.
Core Objectives: Building Entrepreneurial Capacity
At the heart of the NSSH Scheme is its objective to promote entrepreneurial culture among SC and ST communities by enhancing skills, improving access to credit, and facilitating participation in the government procurement process. One of the key mandates under India’s Public Procurement Policy is that at least 4% of government purchases be sourced from SC/ST MSEs. The NSSH Scheme actively supports this target through awareness, registration support, and vendor development programmes.
Key Features of the NSSH Scheme
1. Capacity Building and Skill Development
The scheme conducts training programmes, workshops and awareness campaigns to equip SC/ST entrepreneurs with business management, technical, and marketing skills—enabling them to operate efficiently in competitive markets.
2. Financial Support and Subsidies
Under the Special Credit Linked Capital Subsidy Scheme, eligible SC/ST MSEs can receive up to 25% subsidy (capped at ₹25 lakh) to acquire plant and machinery, thereby reducing startup and expansion costs.
3. Marketing and Market Linkages
Through initiatives like the Special Marketing Assistance Scheme (SMAS), SC/ST enterprises receive support to participate in domestic and international exhibitions, enabling them to showcase products, build networks and attract buyers.
4. Single Point Registration Support
The scheme provides 100% subsidy on NSIC’s Single Point Registration Scheme (SPRS), helping SC/ST firms attain easier access to procurement opportunities with government entities.
5. Reimbursement on Financial Charges
SC/ST entrepreneurs can receive reimbursement on bank loan processing fees (up to ₹1 lakh), easing financial burdens during scaling and operational phases.
Public Procurement and Market Integration
One of the notable strengths of the NSSH Scheme lies in assisting SC/ST enterprises to compete in public procurement—a space traditionally dominated by larger or more established firms. By offering support for GeM registration, tender participation, and compliance understanding, the scheme opens crucial market avenues for underserved entrepreneurs.
Recent Developments and Government Focus
Recently, the Ministry of MSME renewed emphasis on expanding outreach, strengthening coordination with Central Public Sector Enterprises (CPSEs) to meet procurement targets, and enhancing digital support platforms to make the scheme more accessible and transparent for beneficiaries.
Why This News is Important
Socio-Economic Inclusion and Empowerment
The NSSH Scheme stands as a key pillar in the Indian government’s strategy to promote social equality through economic empowerment. Historically, SC/ST communities have faced barriers in accessing resources, finance, markets, and procurement opportunities. This scheme directly addresses these gaps by providing structured support and targeted interventions, helping bridge economic disparity and ensure equitable participation in India’s growth story.
Relevance for Government Exams
For aspirants preparing for competitive government exams (UPSC, PSC, SSC, banking, railways, defence, and teacher recruitment), this scheme is important under Indian Polity & Governance and Economic Development segments. Questions may focus on:
- The purpose and key features of the NSSH Scheme.
- Government strategies for inclusive growth and MSME promotion.
- Public Procurement Policy mandates and affirmative action frameworks.
Understanding the scheme aids in comprehending how public policy is used as a tool for social justice and economic inclusion—a recurring theme in civil services and administrative examinations.
Historical Context: Background of the NSSH Scheme
Launch and Policy Foundation
The National Scheduled Caste and Scheduled Tribe Hub Scheme was formally launched in October 2016 by the Prime Minister under the Ministry of MSME as part of the government’s commitment to strengthen entrepreneurship among marginalized communities.
Link with Public Procurement Policy
The scheme is deeply tied to the Central Government Public Procurement Policy for MSEs Order 2012, which mandates a minimum 4% procurement target from SC/ST-owned enterprises. The NSSH Scheme was designed to assist SC/ST entrepreneurs in fulfilling this requirement by enhancing their competitiveness and market readiness.
Evolution and Expansion
Over successive financial cycles (notably from 2021-22 to 2025-26), the government has broadened support mechanisms under the NSSH Scheme—enlarging fund allocations, expanding marketing and capacity support, and integrating digital tools and handholding facilities to benefit a larger base of SC/ST entrepreneurs.
Key Takeaways from National Scheduled Caste and Scheduled Tribe Hub (NSSH) Scheme
| Serial No. | Key Takeaway |
|---|---|
| 1 | NSSH is a central scheme aimed at empowering SC/ST entrepreneurs through skill development and financial support. |
| 2 | It supports SC/ST MSEs to meet the mandatory 4% procurement target under the Public Procurement Policy. |
| 3 | Key benefits include subsidies, training, marketing assistance, and registration support. |
| 4 | The scheme provides reimbursement on bank loan processing fees and market linkage facilitation. |
| 5 | Understanding NSSH helps aspirants answer questions on inclusive policies, MSME growth, and affirmative action in exams. |
FAQs: Frequently Asked Questions
1. What is the National Scheduled Caste and Scheduled Tribe Hub (NSSH) Scheme?
The NSSH Scheme is an initiative by the Ministry of MSME to empower SC/ST entrepreneurs by providing financial support, skill development, market linkages, and assistance in government procurement.
2. When was the NSSH Scheme launched?
The scheme was launched in October 2016 under the Ministry of Micro, Small & Medium Enterprises (MSME).
3. What is the main objective of the NSSH Scheme?
Its primary objective is to promote entrepreneurship among SC/ST communities and facilitate their participation in public procurement, targeting inclusive economic growth.
4. What are the key benefits provided under the NSSH Scheme?
Benefits include capacity building, training, marketing assistance, subsidy on capital expenditure, reimbursement of bank loan fees, and help with GeM registration.
5. How does the NSSH Scheme support public procurement for SC/ST MSEs?
The scheme assists SC/ST entrepreneurs to meet the mandatory 4% government procurement target by offering registration support, vendor development, and awareness programs.
6. Who can avail the financial assistance under the NSSH Scheme?
SC/ST-owned micro and small enterprises (MSEs) that are eligible under the scheme can receive subsidies for capital expenses and financial support for business growth.
7. How does NSSH help in marketing and exhibitions?
The scheme provides support to SC/ST MSEs to participate in domestic and international exhibitions under the Special Marketing Assistance Scheme (SMAS), enabling better market exposure.
8. What is the role of the Single Point Registration Scheme (SPRS) in NSSH?
NSSH covers 100% subsidy on NSIC’s SPRS, helping SC/ST MSEs get easier access to government tenders and procurement opportunities.
9. Why is NSSH important for government exams?
Questions related to NSSH are relevant for Indian Polity, Governance, and Economic Development sections, focusing on inclusive policies, public procurement, and MSME development.
10. How does NSSH contribute to social and economic inclusion?
It bridges historical gaps by empowering marginalized communities economically, providing access to finance, markets, and procurement opportunities.
Some Important Current Affairs Links
