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

* As on Dec 2024, 5.70 crore MSMEs, with an employment of 24.14 crore are registered on Udyam Registration Portal and Udyam Assist Platform (UAP). ​

* The Union Ministry of Micro, Small, and Medium Enterprises has received an allocation of Rs. 23,168 crore in FY26 Union Budget, reflecting a 4.6% increase compared to the FY25 Budget. ​

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

* Under Pradhan Mantri Mudra Yojana (PMMY), In FY25 (until 21st February 2025), Rs. 4.14 lakh crore (US$ 47.6 billion) was sanctioned under 4.2 crore Mudra loans to non-corporate and non-farm MSEs.​

* The "Raising and Accelerating MSME Performance" (RAMP) scheme, launched in 2022, has benefitted 4 lakh micro, small, and medium enterprises, with women-owned businesses making up over 38% of the registered MSMEs, highlighting the government's focus on empowering female entrepreneurs.​

Policy
Support

* The Union Budget for FY26 has raised the investment limits for MSMEs by 2.5 times and doubled the turnover thresholds. Specifically, the new limits are as follows: ​

1. For micro-enterprises, the investment limit is now Rs. 2.5 crore (US$ 0.3 million), with a turnover limit of Rs. 10 crore (US$ 1.2 million). ​

2. For small enterprises, the investment limit has been set at Rs. 25 crore (US$ 2.9 million), and the turnover limit is Rs. 100 crore (US$ 11.5 million).​

3. For medium enterprises, the investment limit is now Rs. 125 crore (US$ 14.4 million), while the turnover limit stands at Rs. 500 crore (US$ 57.6 million).​

Last updated: Apr, 2025

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