MSME Industry in India

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 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.​

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.

*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.​

Last updated: Jul, 2024

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