A robust manufacturing sector is imperative for achieving sustainable and inclusive development. Also, in the Indian context, Micro, Small and Medium Enterprises (MSMEs) are of vital importance due to their contribution to GDP, exports and employment. Indian Government has launched many schemes to vitalize and improve the competitiveness of Manufacturing MSMEs. ‘Lean Manufacturing Competiveness Scheme’ (LMCS) is a huge step aimed to act as a catalyst for lean adoption by Indian MSMEs. This paper uses SAP LAP framework to address critical questions regarding lean adoption by Indian manufacturing MSMEs in the context of the government scheme ‘LMCS’. The study adds to the existing body of knowledge on lean manufacturing that emphasizes on the importance of soft issues while implementing lean. It also benefits the stakeholders by suggesting suitable actions that can be taken to further improve the competitive priorities of MSMEs.