A revision in Micro Small and Medium Enterprises (MSME) definition was announced in the Aatmnirbhar 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.

Threrefore, 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 of May 9, the total number of transactions or orders processed on the Government E-Marketplace (GeM) portal stood at 1.50 crore by 68,620 buyer organizations from over 60 lakh sellers and service providers, of which 8.73 lakh sellers were micro and small enterprises (MSEs).

As of November 2022, the GeM portal has served 12.28 million orders worth Rs. 334,933 crore (US$ 40.97 billion) from 5.44 million registered sellers and service providers for 62,247 buyer organisations.

As per data from the Ministry of Micro, Small & Medium Enterprises, as of May 18, 2023, the Udyam Registration portal registered 16,215,785 MSMEs, replacing the former process of filing for a Udyog Aadhaar Memorandum (UAM). Registered micro-enterprises stood at 15,548,986 (95.88%), followed by small enterprises at 546,471 (3.36%) and midsized enterprises at 52,078 (0.32%).

As of March 15, 2022, under the top five state-wise Udyam registrations, Maharashtra recorded maximum number of registrations with 27.60 lakh units, followed by Tamil Nadu (15.43), Uttar Pradesh (12.60), Gujarat (11.27), Rajasthan (11.24). Majority (72%) of the registered MSMEs, as of December 31, 2022 were service enterprises, while manufacturing covered 28%.

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.

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 on 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 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.

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).

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. 

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.

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.

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. 2,928,000 crore (US$ 400 billion) target by the end of FY22 and further push it to Rs. 7,320,000 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.