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 @ 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