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

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