MSME Industry - Infographic

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 ~ 7.5 crore in the coming times, growing at a projected CAGR of 2.5%. 

* 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,

* 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.

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

* Under Pradhan Mantri Mudra Yojana (PMMY), In FY24*, Rs. 4.82 lakh crore (US$ 58.13 billion) was sanctioned under 5.8 crore Mudra loans to non-corporate and non-farm MSEs.

* Under Pradhan Mantri Mudra Yojana (PMMY), in FY23, Rs. 4.56 lakh crore (US$ 55.58 billion) was sanctioned under 6.2 crore Mudra loans to non-corporate and non-farm MSEs, against a target of Rs. 4 lakh crore (US$ 48.75 billion ).

policy
Support

* In the interim budget 2024-2025, it was announced the establishment of a corpus totalling Rs. 1 lakh crore (US$ 11.99 billion), offering 50-year interest-free loans. This initiative aims to incentivize the private sector, particularly MSMEs, to enhance research and innovation in emerging sunrise domains. 

* 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: May, 2024

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