CITIZEN-MAJORITY TOKENIZED OWNERSHIP FOR MSME REVIVAL IN INDIA: THE G-CMTO MODEL INTEGRATING BLOCKCHAIN, THE E-RUPEE AND THE MICROSME–BLOCKCHAIN INDEX

India's micro, small and medium enterprises (MSMEs) produce about 31.1% of GDP and nearly half of the country's exports (48.58%), yet they work against an addressable credit gap of roughly ₹30 lakh crore. Meanwhile, India's trade deficit with China touched a record US$112.6 billion in FY2025-26. The policy conversation has no shortage of diagnoses; what it lacks is a mechanism someone could actually implement. This paper offers one: the Gujar Citizen-Majority Tokenized Ownership (G-CMTO) Model, designed for new micro and small manufacturing units of ₹50 lakh to ₹10 crore in product categories exposed to imports. In a G-CMTO unit, resident citizens and non-resident Indians together own 50–55% of the equity through tokenized shares that can be bought for as little as ₹100. An accountable operator holds 30–35%, the government contributes a 5% subordinated first-loss stake, and bank debt covers the remaining 10%. Three layers hold the model together: the e-Rupee as programmable money, a depository-run permissioned ledger for ownership, and a new MicroSME–Blockchain Index (MBI) for intelligence. Sixty per cent of the MBI's weight comes from verified money flows, and its grades decide how much GST is reimbursed, whether the operator's bonus equity vests and when new issuance is paused. Following a design-science approach, the paper sets out the capital structure, governance, index, fiscal incentive and legal pathway, and works them through three illustrative cases: a ₹50 lakh toy unit, a ₹1 crore series LED unit and a ₹10 crore BLDC fan plant. The argument is simple. India can build citizen-owned industrial capacity on infrastructure its regulators are already piloting, and the more people take part, the stronger the index becomes.