Indian MSMEs must respond quickly to the fast-changing requirements using dynamic capabilities gained while adopting strategic changes like flexibility and a lean management system (LMS). The present research aims to review the depth and effect of LMS and the understanding of lean philosophy in Indian MSMEs. First, a systematic literature review (SLR) approach using a four-stage process cycle of Plan-Do-Check-Propose (PDCP) applied with a unique integration of Plan-Do-Check-Act (PDCA) in a Plan-Do-Check-(Analyse/Propose) (PDCP) during analysis and synthesis of the data. The SLR captures the need for lean manufacturing practices and its advantages in MSMEs with critical lean barriers. Next, the Government of India (GOI) measures to promote LMS and "Lack of awareness of lean manufacturing competitiveness scheme (LMCS)" among Indian MSMEs are reported. Finally, the study concludes with gaps and improvements needed to strengthen the effectiveness of the schemes, together with the requirement of studies to appraise the direct effects of GOI promotional measures on MSME's performance in a longer perspective.