MSME Idea Hackathon 5.0 - 2025
- Rajasekar Madhavan
- Jul 1
- 6 min read
Reward: 15 lakh INR Last Date to Enrol: 14th July 2025 (at time of Launch)
Contest Background:
The MSME Idea Hackathon 5.0 is a flagship initiative by the Ministry of Micro, Small & Medium Enterprises (MSME), Government of India, designed to foster innovation and support early-stage ideas with commercial potential. It’s part of the broader MSME Innovative Scheme, which includes Incubation, Design, and IPR support. This edition marks a significant milestone in the journey of fostering inclusive innovation, as it opens its doors to a broad spectrum of participants, welcoming all Indian citizens aged 18 to 60 years
Key Highlights:
Who can apply: Students, innovators, startups, and MSMEs with novel, implementable ideas.
Focus areas: Ideas across sectors like manufacturing, services, rural development, sustainability, and digital solutions are encouraged.
Support offered:
Financial assistance for idea development and prototyping
Access to incubation centers and mentorship
Potential for commercialization and scaling
Why it matters:
This hackathon is not just a competition—it’s a launchpad for grassroots innovation. Selected ideas receive funding and incubation support, helping transform concepts into viable businesses.
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Primary Themes for Ideas:
Low-carbon footprint solutions/technologies :
MSMEs are ideal for decentralized low-carbon footprint solutions as the energy demand is usually small and distributed, and renewable power can often be cheaper than an unreliable grid connection or diesel back-up power. Efficient integration into low-carbon pathways is usually hindered by the low technological base and typically rural, and semi-urban location of most MSME units. A major priority of innovations across the board is to protect, preserve and scale these low-carbon footprint industries.
Stealth, Surveillance, and Cyber Defense Technologies:
Aligned with India’s national security priorities, this theme invites innovations in stealth UAVs, low-observable materials, electronic warfare, and cyber defense frameworks. Solutions could also include AR/VR-based combat training systems and AI-enabled surveillance tools. The aim is to strengthen defense capabilities and explore dual-use civilian applications.
Innovation in Adoption of Industry 4.0 & 5.0 in MSME ecosystem:
Enable MSMEs to adopt advanced technologies and leverage infrastructure created under industrial corridors and other initiatives with key focus areas -Automation and robotics, Cyber-physical systems, Human-centric innovation (Industry 5.0), Infrastructure mapping and access, to name a few. Categories like Plug-and-play automation kits for MSMEs to retrofit existing machinery, Digital twin platforms for predictive maintenance and process optimization, Collaborative robotics (cobots) for small-scale assembly lines, GIS-based tools to help MSMEs locate and utilize nearby industrial corridor facilities like logistics hubs, testing centres, and common facility centres.
Innovation for business upliftment and sustainability in coastal and hilly areas:
Promote inclusive growth by addressing the unique challenges and opportunities faced by MSMEs in geographically sensitive and underserved regions like coastal belts and hilly terrains. Participants are invited to design innovative systems that improve India's capacity to handle climate-related disruptions and emergencies. Potential areas include but not limited to AI-powered risk forecasting, decentralized supply chains, disaster-ready infrastructure, and community-based early warning systems. The emphasis is on scalable and affordable solutions that protect lives, assets, and livelihoods. Key focus areas include- climate-resilient business models, local resource-based entrepreneurship, disaster-resilient infrastructure and logistics, and digital and physical connectivity solutions etc.
Smart and Resilient Supply Chains:
To strengthen MSME supply chains by making them more agile, transparent, and data driven with key focus areas like Logistics optimization, Inventory management, Supplier-buyer matchmaking and Risk mitigation and forecasting. Categories like AIbased demand forecasting tools for MSMEs to reduce overproduction and stockouts, Collaborative supply chain platforms that connect MSMEs with logistics providers and raw material suppliers, Digital twin models to simulate and optimize supply chain operations, IoT-enabled smart warehousing solutions for real-time inventory tracking, etc.
Guidelines for Ideas:
Marketing & Branding: Innovation related to the customer experience.
Ideation: Innovation related to the product idea & concept.
Technology: Innovation related to the product functionality.
Co-creation: Innovation related to the customer involvement.
Social Innovation: Innovation related to the corporate culture.
Entrepreneurship: Innovation related to through entrepreneurial thinking.
Open Innovation: Innovation related to stakeholders.
Business Model Innovation: Innovation related to the purpose and strategy.
Contest Stages:
Stage 1 - Evaluation by the Host Institutes
Ideas selected by the applicant will be sent to the respective HI. (HIs all across the country will shortlist meritorious ideas and will be forwarded to MoMSME). No request for change of HI by the applicant shall be entertained.
For evaluation, each HI will identify and create a pool of experts from different domains/ areas of expertise, for e.g., entrepreneur, technical expert, financial expert, thematic expert, etc.
From this pool of experts, a panel of minimum 3 and maximum 5 experts will be selected by the HI to evaluate each idea.
After evaluation, each HI will submit the shortlisted applications on the https://innovative.msme.gov.in/ and will upload the scores & details of shortlisted applicants theme-wise. During evaluation, HIs shall adhere to the guidelines/modalities decided by Ministry of MSME.
Stage 2 - Evaluation by the Ministry of MSME
After receiving shortlisted ideas from HI, the PMU will carry out the first stage screening. Only those ideas which have been received with relevant and appropriate information, fulfilling all the obligatory conditions as per the scheme guidelines, will be processed. If the idea uploaded is incomplete/or with incoherent information, the idea will be liable for rejection.
This will then be counter-checked by the programme division to ensure that no eligible idea has been left out. Thereafter the screened ideas will be forwarded to the Domain Expert Selection Committees (DESCs).
Stage 3 – Selection of Ideas by Domain Expert Selection Committee (DESC)
The ideas received would be segregated into the following four verticals, which will be evaluated by respective DESCs.
The thematic Domain Expert Selection Committees (DESCs) will comprise experts from Industry/Academia/Government. DESCs will select the ideas, from the ideas forwarded to them after the first stage screening.
The DESC will evaluate the ideas as per the criteria decided by the Ministry and would select ideas for recommending to PMAC for final approval. To ensure that all the sectors and verticals get adequately represented, the number of ideas recommended shall be in the ratio of them being received. However, the cut off ratio will be indicated by the programme division
Stage 4 – Final Selection by Project Monitoring & Advisory Committee (PMAC)
After detailed evaluation by DESCs, the recommended ideas would be forwarded to the PMAC for final approval. PMAC will be the final authority to approve the ideas.
The approved ideas will be granted financial assistance as per scheme guidelines.
PMAC has the right to reject any idea without assigning any reason
Who can Apply:
a. Any innovator of Indian origin- having e-mail and mobile number.
b. You can apply under three categories – MSME, Student and Others.
c. Under MSME category, register for MSME Idea Hackathon using Udyam Registration number.
d. Under Student category, a Student Identity Card valid for FY 25-26 must be submitted.
How to Apply:
Ministry of MSME will receive ideas from 27th June to 14th July on the dedicated Portal through the link: https://innovative.msme.gov.in/.
In the Application Form, the applicant has the option to choose the Host Institutes (HI) in their State/UT. In case there is no HI, the applicant may choose an HI of their choice from any other State/UT. Before choosing the HI, applicant may explore information about the HI regarding the viability of developing the idea and then make a decision. This will form the basis of segregating the applications regionally for evaluation and later providing incubation support. The ideas shared by the applicants will undergo two stages of rigorous evaluation at Host Institute & MoMSME level and one-stage of final selection by PMAC MoMSME
Rewards:
The selected Ideas will receive funding of up to a maximum of ₹15 lakhs & incubation support under the Ministry’s MSME Innovative Scheme (Incubation Component) for nurturing and development of Idea into prototype
.............INNOVATE TO WIN..............
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