Indian Government’s Schemes Towards Greening of MSMES to Achieve the Goal of Green Productivity: A Performance Analysis

By : Dhulasi Birundha Varadarajan , S. Sha Hussain , Yacob Khan

Page No: 355-365

Abstract
The Micro, Small and Medium Enterprises (MSME) sector is pivotal for India’s transition to a green economy. This paper evaluates the performance of government schemes promoting green productivity from 2021-22 to 2025-26. Using trend and cost-efficiency analyses on secondary data, the study reveals a massive surge in Udyam registrations (95.8% CAGR). Crucially, the budget allocation for green schemes grew by 45.8%, significantly outpacing the general MSME budget growth of 10%. An analysis of the circular economy scheme (SPICE) indicates a high direct benefit ratio of 96.4%. The study concludes that green investment is rising efficiently but requires specific policy categorisation.

Authors
Dhulasi Birundha Varadarajan, Emeritus Professor, Senior Fellow, ICSSR, New Delhi, India.
S. Sha Hussain and Yacob Khan, Assistant Professor, PG and Research Department of Economics, Thiagarajar College, Madurai, Tamil Nadu, India.
 

DOI: https://doi.org/10.32381/PROD.2026.66.04.04