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 March 2024, the number of MSMEs registered on the Udyam portal, including the Udyam Assist Platform (UAP), has reached 4,00,42,875, with continual growth observed. Among these, 3,93,18,355 are classified as micro-enterprises, accounting for approximately 97.7% of the total. Small enterprises constitute 6,08,935, representing about 1.5%, while medium-sized enterprises total 55,488, comprising roughly 0.8% of the total registered entities.

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.

The Government e-Market (GeM) portal in India has achieved a significant milestone, surpassing Rs. 9.82 lakh crore (US$ 117.72 billion) in public procurement transactions as of July 30, 2024, 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 November 2022, the GeM portal has served 12.28 million orders worth Rs. 3,34,933 crore (US$ 40.97 billion) from 5.44 million registered sellers and service providers for 62,247 buyer organisations.

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).

Majority (72%) of the registered MSMEs, as of December 31, 2022, were service enterprises, while manufacturing covered 28%.

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.

According to the Budget 2024 documents, Rs. 22,138 crore (US$ 2.65 billion) has been allocated to the MSME Ministry, remaining unchanged from the previous year, while the budget for central sector schemes for MSMEs has increased marginally to Rs. 21,868 crore (US$ 2.62 billion).

The number of MSMEs in the country is expected to grow from 6.3 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.

New online system of MSME/Udyam Registration launched by the Union MSME Ministry, w.e.f. July 01, 2020, successfully registered >5.7 million MSMEs until November 2021. Aero India 2021 resulted in orders worth Rs. 203 crore (US$ 27.76 million) for 45 MSMEs that participated in the event. The Ministry of Micro, Small and Medium Enterprises extended the validity of Udyog Aadhaar Memorandum from December 31, 2021, to June 30, 2022.

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. To provide reliable measures and set benchmark to boost and strength the MSME sector in India, TransUnion CIBIL, in partnership with the Ministry of Statistics & Programme Implementation (MoSPI), launched the MSME Credit Health Index on November 2, 2020.

MSMEs are projected to benefit from the 7% growth forecast for FY24, expecting increased capital expenditure and hiring, as indicated by a joint report by U GRO Capital and Dun & Bradstreet.

Interim Budget 2024 allocates Rs. 22,137.95 crores (US$ 2.65 billion) for MSMEs, emphasizing new clusters and technology centers for global competitiveness, with positive feedback from industry stakeholders.

According to the Budget 2024 documents, Union Minister for Finance and Corporate Affairs, Mrs. Nirmala Sitharaman announced a crucial increase in the MUDRA loan limit for MSMEs from Rs. 10 lakh (US$ 11,988) to Rs. 20 lakh (US$ 23,977) for those who have successfully repaid their previous loans.

From January to December 2023, the Entrepreneurship Skill Development Programme (ESDP) conducted 1,579 programs, benefiting 84,716 individuals. Additionally, various organizations under the Ministry trained 3,07,583 individuals, including Tool Rooms & Technical Institutions, New Technology Centres, NSIC Ltd., KVIC, ni-msme, and Coir board.

Under Pradhan Mantri Mudra Yojana (PMMY), In FY24, Rs. 5.41 lakh crore (US$ 64.87 billion) was sanctioned under 6.6 crore Mudra loans to non-corporate and non-farm MSEs.

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.

As of December 14, 2022, the number of loans sanctioned under the Pradhan Mantri MUDRA Yojana (PMMY) scheme was 16.67 crore and the amount disbursed was Rs. 9.98 lakh crore (US$ 120 billion) in the last three financial years (FY20-FY22). This scheme will help enterprises in the services sector meet various technology requirements. The Indian government announced to extend the scope of the Emergency Credit Line Guarantee Scheme (ECLGS) to MSMEs and extend it until March 2022.

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.

Indian Micro, Small and Medium Enterprises (MSMEs) are rapidly adopting digital payments over cash, with 72% payments done through the digital mode compared with 28% cash transactions. Rise in digital adoption presents prospects for further growth in the sector. In FY23 till December 31, 2022, the number of digital transactions stood at 9,192 crore and worth Rs. 2,050 trillion (US$ 24.73 trillion).

The BSE SME (small and medium enterprises) platform is expected to witness >60 SMEs to enter the market in one year (2021-22) to bring up equity funds for meeting their business requirements. The initial public offering (IPO) route witnessed 16 SMEs enter the market; they raised Rs. 100 crore (US$ 13.74 million) in 2020. In June 2021, Bombay Stock Exchange (BSE) announced that it has collaborated with Electronics and Computer Software Export Promotion Council (ESC) to build awareness among small businesses and start-ups about advantages of listing. In the Union Budget of 2022-23 MSMEs sector was allocated an Emergency Credit Line Guarantee Scheme (ECLGS) of Rs. 50,000 crore (US$ 6.55 billion).

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 in order 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.

The Prime Minister’s Employment Generation Programme (PMEGP) has created approximately 8 million jobs and supported over 9.65 lakh micro enterprises since its inception in FY09, according to the MSME ministry. The scheme has provided more than Rs. 25,263.33 crore (US$ 3.03 billion) in subsidies and aims to enhance employment opportunities for traditional artisans and unemployed youth.

In September 2021, Aerospace Engineers Private Limited, a Tamil Nadu-based MSME, secured a contract from Boeing to produce and supply critical aviation components. Walmart and Flipkart announced the completion of the first phase of training of >2,500 MSMEs under Vriddhi, the supplier development programme. Flipkart introduced 'Flipkart Boost’ to help digital-first consumer brands and empower MSMEs. HDFC Bank collaborated with the National Small Industries Corporation (NSIC) to offer credit support to the micro, small and medium enterprise (MSME) sector.

In August 2021, the US Agency for International Development (USAID) and the US International Development Finance Corporation (DFC) collaborated with Kotak Mahindra Bank to support MSMEs.

In August 2021, Facebook India, in collaboration with Indifi, announced ‘Small Business Loans Initiative’, a new programme to support small and medium businesses (SMBs) get quick access to credit via independent lending partners.

In August 2021, Indian Bank introduced 'MSME Prerana', an online business-mentoring programme for MSMEs in Odisha. In FY21, the state (Odisha) accounted for ~5% of the total MSME credit exposure of Indian Bank and recorded an increase of 39% YoY.

At the TN Global Investors Meet in January, investments of Rs. 63,573 crore (US$ 7.62 billion) were committed, with Rs. 13,000 crore (US$ 1.56 billion) operationalized in the MSME sector. State Minister for MSME, Mr. T.M. Anbarasan announced that 1,277 MSME companies have invested Rs. 13,003 crore (US$ 1.56 billion) over the past five months, generating approximately 46,000 jobs. Additionally, 60% of the MoUs signed during the meet are in advanced stages of implementation, with a high-level committee to oversee these investment commitments being formed.

The NSIC, through an MoU with APEDA, will help its MSME members in exploring the export potential of their agricultural and processed foods products. Additionally, APEDA members will get access to NSIC schemes, which would help them address issues pertaining to technology adoption, skills, product quality, and market access.

Budget allocation for MSMEs in FY22 more than doubled to Rs. 15,700 crore (US$ 2.14 billion) vis-à-vis Rs. 7,572 crore (US$ 1.03 billion) in FY21.

In July 2021, Lok Sabha passed a bill on ‘Factoring Regulation (Amendment)’ to expedite the payments ecosystem for MSMEs.

The government also announced Rs. 3 lakh crore (US$ 40.85 billion) collateral-free automatic loans for businesses.

In Union Budget 2021, the government announced funds worth Rs. 10,000 crore (US$ 1.36 billion) for ‘Guarantee Emergency Credit Line’ (GECL) facility to eligible MSME borrowers, giving a major boost to the sector.

In November 2021, the Ministry of Micro, Small and Medium Enterprises launched SAMBHAV, a national-level awareness programme to push economic growth by promoting entrepreneurship and domestic manufacturing.

In September 2021, Union Minister for MSMEs, Mr. Narayan Rane introduced ‘India Export Initiative’ and ‘IndiaXports 2021 Portal’. This initiative will help exports reach its Rs. 29,28,000 crore (US$ 400 billion) target by the end of FY22 and further push it to Rs. 73,20,000 crore (US$ 1 trillion) by FY27.

In September 2021, Khadi, and Village Industries Commission (KVIC) established the first ‘Silk Yarn Production Centre’ in Odisha to boost the local silk industry and generate employment. Khadi and Village Industries Commission (KVIC) launched SPIN (Strengthening the Potential of India) scheme and built a pottery cluster under SFURTI Scheme in Varanasi to support >1,100 individuals of the marginalised potters’ community. Union Minister for MSMEs, Mr. Narayan Rane inaugurated Rohtak Technology Centre, which is expected to train >8,400 trainees annually.