National SC-ST Hub Scheme: Promoting Inclusive Entrepreneurship

Context

1. As of 31 July 2026, the National SC-ST Hub (NSSH) has supported 1,90,414 beneficiaries and trained 54,499 candidates since its launch.
2. The scheme remains important for improving the participation of SC/ST entrepreneurs in the MSME ecosystem and public procurement.

What is the National SC-ST Hub?

1. Launched in October 2016, NSSH is a flagship initiative of the Ministry of MSME.
2. It is implemented by the National Small Industries Corporation (NSIC).
3. Its main objective is to promote entrepreneurship among Scheduled Caste and Scheduled Tribe communities.
4. It helps existing as well as prospective SC/ST entrepreneurs improve their capacity, competitiveness and market access.
5. The scheme also supports the broader goal of increasing participation of SC/ST-owned enterprises in the formal economy.

How the Scheme Supports SC/ST Entrepreneurs

1. Capacity building: Provides training, skill development and mentoring to improve enterprise management.
2. Market access: Helps entrepreneurs participate in exhibitions, vendor-development programmes and government procurement.
3. Formalisation support: Facilitates Udyam registration and GeM onboarding, improving access to official markets.
4. Credit facilitation: Supports easier linkage with institutional finance.
5. Technology support: The Special Credit Linked Capital Subsidy Scheme (SCLCSS) provides a 25% subsidy up to ₹25 lakh for eligible investment in plant, machinery and equipment.
6. Thus, NSSH addresses multiple barriers together: skills + finance + technology + market linkage.

Public Procurement and Inclusive Growth

1. The scheme supports the policy target of 4% procurement from SC/ST-owned MSEs by Central Ministries, Departments and CPSEs.
2. Vendor-development and mentoring programmes help connect SC/ST enterprises with government buyers and larger public-sector companies.
3. This creates a more predictable market for first-generation entrepreneurs and reduces dependence only on private demand.
4. By strengthening enterprise ownership, the scheme promotes economic empowerment rather than welfare dependence.
5. Its wider significance lies in improving social mobility, self-reliance and representation of SC/ST communities in productive economic activity.
6. Therefore, NSSH links social justice with entrepreneurship-led development, making inclusion part of the MSME growth process.

FAQs

Q1. When was the National SC-ST Hub launched?
In October 2016.

Q2. Which ministry administers the scheme?
The Ministry of Micro, Small and Medium Enterprises.

Q3. Which organisation implements the scheme?
The National Small Industries Corporation (NSIC).

Q4. What is the major capital subsidy benefit under SCLCSS?
A 25% subsidy up to ₹25 lakh for eligible plant, machinery and equipment.

Q5. What procurement target does the scheme support?
At least 4% procurement from SC/ST-owned MSEs by Central Ministries, Departments and CPSEs.