MSMEs are being encouraged to market their products on the e-commerce site, especially through Government e-Marketplace (GeM), owned and run by the government, wherefrom Ministries and PSUs (public sector undertakings) source their procurement.

A revision in Micro Small and Medium Enterprises (MSME) definition was announced in the Aatmanirbhar Bharat Abhiyaan Scheme on May 13, 2020. The Ministry of Micro, Small, and Medium Enterprises, vide its gazette notification dated June 1, 2020, has announced the upward definition and criteria of the MSME. The new classification for MSME came into effect from July 1, 2020.

Therefore, according to the new classification of Micro, Small and Medium Enterprises (MSME) under the Aatmanirbhar Bharat Abhiyaan Scheme, enterprises are defined based on the investment criteria in plant and machinery and turnover.

As per data from the Ministry of Micro, Small & Medium Enterprises, as of July 2024, the number of MSMEs registered on the Udyam portal, including the Udyam Assist Platform (UAP), has reached 4.77 crore, with continual growth observed.

As of March 2024, the Government e-marketplace (GeM) portal served 5.8 million orders worth Rs. 3,87,006 crore (US$ 46.67 billion) with 148,245 primary buyers and 215,743 secondary buyers.

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 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:

• 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).
• For small enterprises, the investment limit has been set at Rs. 25.0 crore (US$ 2.9 million), and the turnover limit is Rs. 100.0 crore (US$ 11.5 million).
• 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).

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.

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.

In January 2024, UPI processed over 16 billion transactions, totalling Rs. 23. 48 lakh crore (US$ 270.3 billion), marking a 27% year-on-year increase.

MSME-SAMBANDH scheme has positively impacted target beneficiaries by providing professional support in upgrading their skills, facilitating market linkages and handholding support which resulted in a 17-fold increase in public procurement from SC/ST MSEs (in terms of value) i.e., Rs. 99 crore (US$ 11.4 million) in FY16 to Rs. 1,722 crore (US$ 198 million) in FY24 as reported on the portal.

As of December 2024, 32 states and union territories have submitted Strategic Investment Plans (SIPs), with 31 of these plans evaluated. Over 200 proposals, amounting to approximately Rs. 3,000 crore (US$ 345.3 million) have been approved for the states and union territories. Since its inception, all initiatives under RAMP have positively impacted more than 4,00,000 MSMEs.

Total 2,792 programmes have been conducted, benefiting 1,40,738 persons, under the scheme, ESDP from January to December 2024.

Scheme of Fund for Regeneration of Traditional Industries (SFURTI) from January to December 2024, 18 clusters have become operational, benefiting a total of 11,810 artisans across 11 states. Additionally, 15 clusters were approved in FY23, with total assistance of Rs. 40.0 crore (US$ 4.6 million) from the Government of India, directly benefiting 8,875 artisans.

From January to November 2024, tool rooms and technical Institutions have supported 44,223 units.

In alignment with the Atmanirbhar Bharat initiative, significant import substitution efforts have been implemented. As a result, several tool rooms have successfully developed and manufactured indigenous components tailored for Micro, Small, and Medium Enterprises (MSMEs).

Under the 'IPR' component, the Intellectual Property Facilitation Cell (IPFC) has approved a total of 73 patents, 616 trademarks, 37 designs, and 1 geographical indication (GI) registration as of September 2024.

MSMEs exports have witnessed a remarkable rise, increasing from Rs. 3.95 lakh crore (US$ 45.5 billion) in CY21 to Rs. 12.39 lakh crore in CY25, underscoring their critical role in boosting India’s economy and strengthening global trade. The total number of exporting MSMEs in CY25 has also increased to 1,73,350 in CY25.

In Union Budget FY26, the government mentioned to support for five lakh first-time women entrepreneurs from scheduled castes and scheduled tribes, providing up to Rs. 2 crore (US$ 0.2 million) in term loans along with online training. This represents a significant advancement toward gender inclusivity in business.

The Government e-Market (GeM) portal in India has achieved a significant milestone, surpassing Rs. 3 lakh crore (US$ 35.96 billion) in public procurement transactions as of November 2024, for this financial year facilitating online purchases for over 63,000 government organizations and supporting more than 1.63 lakh women-led micro and small enterprises (MSEs) and 25,000 startups since its launch in 2016.

As of December 14, 2023, under the top five state-wise Udyam registrations, Maharashtra recorded the maximum number of registrations with 37.12 lakh units, followed by Tamil Nadu (21.74), Uttar Pradesh (20.28), Gujarat (15.53), Rajasthan (15.57).

The gross bank credit deployed to MSMEs under priority sector lending in October 2023 amounted to US$ 279.18 billion, marking a 22.8% increase from the previous year and an 11.8% rise from September 2023, according to the latest RBI data on sectoral deployment.

The number of MSMEs in the country is expected to grow from 6.38 crore, of which only 2.5 crore have ever availed credit from formal sources to approximately 7.5 crore in the coming times, growing at a projected CAGR of 2.5%. 

The Ministry of MSME spent Rs. 23,583.90 crore (US$ 2.84 billion) in FY23, over 260% increase from Rs. 6,513.13 crore (US$ 786.75 million) spent in FY19.

Under Pradhan Mantri Mudra Yojana (PMMY), In FY25 (Until November 2024), Rs. 2.57 lakh crore (US$ 30.84 billion) was sanctioned under 2.6 crore Mudra loans to non-corporate and non-farm MSEs.

The Ministry of MSME runs numerous schemes targeted at providing credit and financial assistances such as the Prime Minister’s Employment Generation Programme, Credit Linked Capital Subsidy Scheme, Credit Linked Capital Subsidy Scheme; Skill development and training schemes such as A Scheme for Promotion of Innovation, Rural Industry & Entrepreneurship (ASPIRE), Entrepreneurship and Skill Development Programmes (ESDP); infrastructure development schemes such as Scheme of Fund for Regeneration of Traditional Industries (SFURTI), Scheme for Micro & Small Enterprises Cluster Development Programme (MSE–CDP) and technological and quality upgradation schemes such as Financial Support to MSMEs in ZED Certification and Support for Entrepreneurial and Managerial Development of SMEs through Incubators.

In the first 100 days of Prime Minister Mr. Narendra Modi's third term, over Rs. 3,148 crore (US$ 377 million) in loans have been disbursed under the Prime Minister Employment Generation Programme (PMEGP). This initiative has led to the establishment of more than 26,000 micro enterprises and the creation of approximately 210,000 jobs.

As per a State Bank of India study by the Chief Economic Adviser, the number of loans approved and granted under the Pradhan Mantri Mudra Yojana (PMMY) to micro and small companies increased to an all-time high. The sanctioned loan volume hit a new high of Rs. 6.23 crore (US$ 760,000) in FY23 from its previous peak of Rs. 5.37 crore (US$ 650,000) loans sanctioned in FY22. In addition, the loan amount disbursed also increased from about Rs. 3.31 crore (US$ 400,000) in FY22 to Rs. 4.50 crore (US$ 550,000) in FY23.

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.

The central government approves Rs. 114.80 crore (US$ 13.67 million) for Rajasthan under the Raising and Accelerating MSME Performance (RAMP) programme, aimed at boosting MSME enterprises in the state and enhancing their capacity to contribute to the goals of Developed India-Developed Rajasthan.

The Centre approves Strategic Investment Plans (SIPs) for nine states, including Rajasthan, West Bengal, and Gujarat, under the Raising and Accelerating MSME Performance (RAMP) scheme, with a total funding of Rs 713 crore (US$ 85.49 million), aiming to reduce compliance costs and improve credit access for micro, small, and medium enterprises.

The Self-Reliant India (SRI) fund, with a corpus of Rs 50,000 crore (US$ 6 billion), has invested Rs 7,593 crore (US$ 910 million) in 425 MSMEs, supporting sectors such as agriculture, pharma, auto, and chemicals, under the Aatmanirbhar Bharat package.

As of February 05, 2024, women owned MSMEs constitute 20.5% of Udyam Portal registrations, contributing 18.73% to employment and 10.22% to turnover. Various initiatives support their growth and empowerment in the sector.

On January 18, 2024, FinAGG Technologies, specializing in MSME financing, secured US$ 11 million funding co-led by BlueOrchard and Tata Capital Ltd. The Series A round also involved SIDBI and Prime Venture Partners, aiming to expand presence, drive innovation, and empower women entrepreneurs.

On February 27, 2023, in New Delhi, a Memorandum of Understanding (MoU) was signed to renew cooperation in the MSME sector between the National Small Industries Corporation Ltd. (NSIC), a CPSE under the Ministry of MSME, and the Korea SMEs and Startups Agency (KOSME) of the Republic of Korea.

On December 15, 2023, DCM Shriram Ltd approved its Chemicals business entry into "Advanced Materials." The Self-Reliant India (SRI) Fund, initiated by the government in May 2020, managed by SBICAP Ventures, has invested Rs. 6,448 crore (US$ 777.62 million) in MSMEs as of November 30, 2023, with a 15-year tenure for equity infusion.

On June 27, 2023, DealShare announces a Rs. 1,000 crore (US$ 120 million) investment over five years in MSME partners across six states. This initiative aims to enhance partner capacity, foster research, and development, and increase affordability through indigenous brands and private labels.

Direct Benefit Transfers (DBT) under the MSME ministry's schemes increased by 18.3% to Rs. 1,975.64 crore (US$ 236 million) until December FY23, compared to Rs. 1,668.99 crore (US$ 199 million) in the same period of FY22. The highest transfer was Rs. 1,505.61 crore (US$ 180 million) under the Prime Minister's Employment Generation Programme (PMEGP).

On June 30, 2022, the Raising and Accelerating MSME Performance (RAMP) Programme, as introduced in the recent Union Budget, was launched. This INR 6,000 crore initiative is geared towards bolstering the competitiveness of MSMEs within the manufacturing sector by offering assistance for productivity enhancement, quality improvement, and branding & marketing efforts.

In May 2022, Aditya Birla Capital launched Udyog Plus, an MSME-focused portal, which provides capital and other business solutions to small businesses, including investments, advisory services, and utility services. It offers online loans up to Rs. 10 lakh (US$ 120,000) to MSMEs through various product offerings such as supply chain finance and transaction-based loans.

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.

The Defence Ministry will procure 928 strategically important Line replacement units, subsystems, spares, and components from Indian MSMEs, as informed in May 2023.

Through the Public Procurement Policy, the Central Government is promoting small-scale enterprises by purchasing the products of MSEs. In the financial year 2022-23, the government spent Rs. 60,432 crore (US$ 7.3 billion), which is 42% more than the target. 

Since the launch of the Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE), till June 30, 2023, guarantees amounting to Rs. 4,50,163 crore (US$ 54.16 billion) have been issued under Credit Guarantee Scheme for Micro and Small Enterprises (CGMSE).

The Department of Animal Husbandry & Dairying (DAHD) under the Ministry of Fisheries, Animal Husbandry and Dairying announced the launch of a new credit guarantee scheme. The scheme under the Animal Husbandry Infrastructure Development Fund (AHIDF) aims to facilitate collateral-free credit for MSMEs in the livestock sector. 

Google plans to make a calculated investment in digital payments with the aim to strengthen the dynamic Indian Micro, Small and Medium Enterprise (MSME) market, said Mr. Sanjay Gupta, Country Head and Vice President of Google India. Google plans to expand its impact beyond payments, aiming to unlock India's MSME potential through financial inclusion and digital empowerment.

In a significant move to bolster the MSME sector in India, the Technology Development Board (TDB) and the Small Industries Development Bank of India (SIDBI) formalized a Memorandum of Understanding (MoU) to facilitate easier access to credit for enterprises engaged in the development and commercial application of indigenous or imported technology.

As announced in December 2023, the share of MSME-related products in all India exports stood at 45.56% as of September 2023 (FY24), informed the Minister of State in the MSME Ministry Mr. Bhanu Pratap Singh Verma.

The Reserve Bank of India on August 17, 2023, announced the launch of the Public Tech Platform for Frictionless Credit (PTPFC) pilot project. The PTPFC has been created by the Reserve Bank Innovation Hub (RBIH), a wholly owned subsidiary of the central bank. The aim of the pilot project is to connect borrowers and lenders, which will make credit more accessible to millions of individuals looking for small loans. The PTPFC will be enabling the disbursal of non-collateral based loans for Micro, Small and Medium Enterprises (MSMEs), Kisan Credit Card loans up to Rs. 1.6 lakh (US$ 1,924.07), dairy loans, personal loans, and home loans.

In February 2023, government announced in budget 2023-24 that Entity DigiLocker is to be setup for use by MSMEs, large businesses, and charitable trusts to store and share documents online securely.

In February 2023, 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%.

In February 2023, government announced in budget 2023-24 that 95% of the forfeited amount relating to bid or performance security, shall be returned to MSMEs by the government and government undertakings in cases wherein the MSMEs failed to execute contracts during the Covid period.

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

On March 30, 2022, the Indian government allocated Rs. 6,062.45 crore (US$ 808 million) for the scheme Raising and Accelerating MSME Performance (RAMP). The programme aims to improve market and credit access, strengthen institutions and governance at the centre and state levels, improve centre-state connections and partnerships, resolve late payment difficulties, and green MSMEs.