MSME Industry in India

With 63.4 million units spread across the country, the MSME sector contributes around 6.11% of the manufacturing GDP and 24.63% of the GDP from service activities.

Advantage India

Sector
Overview

* The number of MSMEs in the country is expected to grow from 6.3 crore, to approximately 7.5 crore in the coming times, growing at a projected CAGR of 2.5%. 

* The number of MSMEs in India increased by a CAGR of 18.5% from 2019 to 2020.

* In FY22, the loan disbursals to MSMEs stood at Rs. 37.29 trillion (US$ 492.96 billion), a 5% increase compared to FY21.

Statutory
Bodies

* The MSME Ministry heads five statutory bodies—KVIC, Coir Board, NSIC, NI-MSME and the MGIRI

* These bodies are responsible for aiding MSMEs with respect to government schemes and policies

Government
Schemes

* The "Vivad se Vishwas I-Relief to MSMEs" scheme was launched in May, 2023 by the Department of Expenditure, Ministry of Finance, to provide relief to MSMEs during the COVID-19 period. The programme was announced by Union Finance Minister Ms. Nirmala Sitharaman in the Union Budget 2023-24.

policy
Support

* In February 2023, government announced in budget 2023-24 that a unified Skill India Digital Platform to be launched in order to enable demand-based formal skilling, linking with employers including MSMEs, and facilitating access to entrepreneurship schemes.

* In Budget 2023-24, government revamped credit guarantee scheme for MSMEs to take effect from April 1, 2023 through the infusion of Rs 9,000 crore (US$ 1.09 billion) in the corpus. This scheme would enable additional collateral-free guaranteed credit of Rs 2 lakh crore (US$ 24.41 billion) and also reduce the cost of the credit by about 1%.

Last updated: Feb, 2024

Posters

MORE
CONTRIBUTES ABOUT 29% TOWARDS THE GDP

CONTRIBUTES ABOUT 29% TOWARDS THE GDP

MSME sector is a major contributor to the socio-economic development of the country.

IBEF Campaigns

MORE
Gulfood Dubai 2023

Gulfood Dubai 2023

APEDA India Pavilion Gulfood February 20th-26th, 2022 | World Trade Centre,...

India Organic Biofach 2022

India Organic Biofach 2022

Ibef Organic Indian Pavilion BIOFACH2022 July 26th-29th, 2022 | Nuremberg, ...

Case Studies

MORE

The Growth of Ayurveda in India

The Growth of Ayurveda in India

Ayurveda, an ancient health system originating from India, has a longstanding history. It revolves around using plants and herbs to maintain health an...

The Success of Digital India

The Success of Digital India

India's digital ecosystem has undergone an enormous change in recent years. The progressive integration of government services into digital platfo...

A Green, Sustainable Cotton: Kala Cotton

A Green, Sustainable Cotton: Kala Cotton

Kala Cotton is indigenous to India and one of the few “Old World” varieties that is still being cultivated on a large scale in India. Farm...

IBEF BLOG

MORE
Mission Net-Zero: A Strategic Plan for the Indian Chemical Sector
6 Mar 2024

Mission Net-Zero: A Strategic Plan for the Indian Chemical Sector

In recent years, the pursuit of net-zero emissions has garnered substantial...

Role of Third-Party Logistics Providers in Indian D2C.
6 Mar 2024

Role of Third-Party Logistics Providers in Indian D2C.

Role of Third-Party Logistics Providers in Indian D2C From the buzzing str...

Increasing the Competitiveness of India's Electronic Exports
6 Mar 2024

Increasing the Competitiveness of India's Electronic Exports

The electronic sector in India has emerged as a key driver of the country&#...

Partners
Loading...