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.
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Criteria
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Manufacturing Enterprises and Enterprises rendering Services
(Revised classification with effect from July 1, 2020)
|
|
|
Turnover
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Investment
|
|
Micro
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Rs. 5 crores
(US$ 610,000)
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Less than Rs. 1 crore (US$ 120,000)
|
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Small
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Rs. 50 crores
(US$ 6.1 million)
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More than Rs. 1 crore (US$ 120,000) but less than Rs. 10 crore (US$ 1.2 million)
|
|
Medium
|
Rs. 250 crores
(US$ 30.4 million)
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More than Rs. 10 crore (US$ 1.2 million), but less than Rs. 50 crore (US$ 6.1 million)
|
As per data from the Ministry of Micro, Small & Medium Enterprises, as on February 28, 2026, 7.86 crore MSMEs, employing 34.63 crore, are registered on the Udyam Registration Portal and the Udyam Assist Platform (UAP).
MSME exports have witnessed a sharp rise, increasing from Rs. 3.95 lakh crore (US$ 45.5 billion) in CY21 to Rs. 12.39 lakh crore in CY25. The number of exporting MSMEs has also grown, reaching 1,73,350 in CY25, underscoring their critical role in boosting India’s economy and strengthening global trade.
The Government e Marketplace (GeM) portal has crossed Rs. 5,40,000 crore (US$ 62.45 billion) in Gross Merchandise Value (GMV) in FY25, facilitating purchases for over 1,60,000 government organizations. It has supported more than 1,80,000 Udyam-verified women-led MSEs and 29,000 startups since its launch in August 2016.
Direct Benefit Transfers (DBT) under MSME ministry schemes stood at Rs. 6,83,917 crore (US$ 80.40 billion) in FY25. The cumulative DBT figure has reached Rs. 43,96,857 crore (US$ 514.55 billion), reflecting the government’s growing emphasis on transparency and efficiency.
The Union Budget for FY26 raised investment limits for MSMEs by 2.5 times and doubled turnover thresholds. The new limits are Rs. 2.5 crore investment and Rs. 10 crore turnover for micro enterprises, Rs. 25 crore investment and Rs. 100 crore turnover for small enterprises, and Rs. 125 crore investment with Rs. 500 crore turnover for medium enterprises.
The budgetary outlay for the Ministry of MSME increased to Rs. 24,566.27 crore (US$ 2.8 billion) in FY27, compared with Rs. 23,168 crore (US$ 2.7 billion) in FY26. The higher allocation underscores the government’s continued focus on strengthening MSME competitiveness, formalisation and access to finance.
In FY 2024–25, CGTMSE approved a record Rs. 3.06 lakh crore (US$ 34.6 billion) in credit guarantees, the highest ever in a single financial year. The Trust also crossed a major milestone by approving its 1 crore guarantee.
The Pradhan Mantri Mudra Yojana (PMMY) has sanctioned over Rs. 33,65,000 crore (US$ 390.87 billion) under 52.37 crore loans as of April 2025, particularly benefitting entrepreneurs from marginal sections.
The scheme continues to strengthen market access and procurement linkages for Micro and Small Enterprises (MSEs), as reflected in the procurement performance for FY26. As per the MSME SAMBANDH portal, procurement from MSEs (including SC/ST-owned units) stood at Rs. 1,08,523.76 crore (US$ 12.3 billion), accounting for 48.43% of total procurement and benefitting 2,45,148 MSEs.
Skill development also remains central. In FY25, 12,576 programmes under the Entrepreneurship and Skill Development Programme (ESDP) benefitted 5,70,063 people.
During FY25, MSME Tool Rooms and Technology Centres trained 2,86,548 trainees and extended support to 46,256 units, highlighting their continued role in skill development and enterprise assistance. The centres generated Rs. 306.05 crore (US$ 0.3 billion) in revenue during the year, reflecting strong operational utilisation and industry engagement.
India’s intellectual property ecosystem continued to witness strong momentum in FY25, with 33,504 patents, 30,350 designs, 3,82,834 trademarks, 62 geographical indications, and 26,767 copyrights granted or registered during the year. The sustained rise in registrations reflects growing innovation activity, stronger brand formalisation, and increasing emphasis on intellectual property protection across industries.
The Scheme of Fund for Regeneration of Traditional Industries (SFURTI) had 376 operational clusters by September 2025, benefitting 2.5 lakh artisans across 29 states/UTs.
State-level activity has also been strong. As of December 2024, 32 states and UTs had submitted Strategic Investment Plans, with over 200 proposals worth Rs. 3,000 crore (US$ 345.3 million) approved. By September 2025, 21,30,581 MSMEs had benefitted. Maharashtra, Tamil Nadu, and Uttar Pradesh together account for nearly 32% of all Udyam registrations.
As of February 27, 2026 (FY26), the RAMP scheme has benefited 51,71,786 MSMEs with a grant sanction of Rs. 3,351 crore (US$ 365.64 million), as reported on the RAMP dashboard.
In FY26 (as of September 30, 2025), the SRI Fund supported 85 MSMEs with a Government of India contribution of Rs. 433 crore (US$ 58.8 million).
Women-owned MSMEs are steadily rising, now constituting 20.5% of Udyam registrations, contributing 18.73% to employment and 10.22% to turnover. In Union Budget FY26, the government also announced support for five lakh first-time women entrepreneurs from SC/ST backgrounds with loans of up to Rs. 2 crore (US$ 0.2 million).
Digital empowerment is gaining momentum. The MSE TEAM initiative, under the RAMP programme, will integrate 5 lakh MSEs (half of them women-owned) with ONDC, eKhadi, MSME Global Mart, and GeM to strengthen their e-commerce presence.
Private sector and global partnerships have also shaped the MSME ecosystem. DealShare announced a Rs. 1,000 crore (US$ 120 million) investment over five years in MSME partners. FinAGG Technologies raised US$ 11 million in Series A funding in 2024, backed by Tata Capital and SIDBI.
Internationally, NSIC renewed cooperation with Korea’s KOSME in February 2023 to strengthen bilateral MSME collaboration.
India’s MSME sector today is not just a backbone of domestic growth but also a critical driver of exports, technology adoption, digital transformation, and women entrepreneurship. The sector continues to receive policy support, credit infusion, and innovation backing, positioning it as a powerful engine for India’s economic future.
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.
India’s MSME sector is poised for sustained growth, backed by robust policy reforms, digital integration, and expanding access to finance. With rising exports, increased participation of women entrepreneurs, and stronger global partnerships, MSMEs are set to play a pivotal role in driving inclusive, innovation-led, and self-reliant economic development.
