MSME Sector Powers Ahead: 30.1% of GDP, 45.73% of Exports – Union Minister Highlights Sector’s Expanding Role

India’s Micro, Small and Medium Enterprises (MSME) sector continues to cement its position as a vital pillar of the Indian economy, contributing significantly to employment, exports and domestic manufacturing. Addressing a press conference in Mumbai today, Union Minister for MSMEs, Shri Mahendra Nath Manjhi, presented key updates and progress made under flagship schemes and platforms during his official visit to the Institute for Design of Electrical Measuring Instruments (IDEMI) and the Khadi & Village Industries Commission (KVIC).

Speaking to media representatives, Shri Manjhi noted that the MSME sector now accounts for 30.1% of India’s GDP, 35.4% of total manufacturing output and 45.73% of national exports, making it the second-largest contributor to the Indian economy.

The Minister underlined the transformative impact of digital and financial inclusion initiatives. He reported that the Udyam Registration Portal, launched in July 2020 to facilitate free, paperless, and self-declared MSME registration, now has over 3.80 crore units registered. Complementing this, the Udyam Assist Portal, launched in January 2023 to formalize micro-enterprises and extend benefits like Priority Sector Lending, has crossed 2.72 crore registrations.

“Together, these 6.5 crore MSME units have generated employment for nearly 28 crore Indians,” Shri Manjhi stated. “The sector has seen an exponential 15-fold increase in unit registrations over the last five years.”

Shri Manjhi also reviewed implementation of the PM Vishwakarma Yojana, which provides integrated support for traditional artisans across 18 trades. From skill training and modern tools to market access and credit, the scheme offers end-to-end enablement for India’s grassroots workforce.

Highlighting job creation through entrepreneurship, the Minister shared that the Prime Minister Employment Generation Programme (PMEGP) has helped 80.33 lakh individuals, with 80% of the beneficiaries from rural India.

In a significant boost to small business financing, more than 1.18 crore credit guarantees worth ₹9.80 lakh crore have been sanctioned under the Credit Guarantee Scheme (CGS) managed by the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE). Of this, a record ₹3 lakh crore in credit guarantees were approved in FY 2024–25 alone. The Minister projected that the number of beneficiaries will triple by 2029, with targeted incentives for women and SC/ST entrepreneurs.

Shri Manjhi also noted improved grievance redressal through the MSME Samadhaan Portal, which handles delayed payment issues. The number of pending cases has dropped to 44,000, down from 93,000 in October 2017, reflecting improved compliance and resolution.

Applauding the efforts of MSME institutions like KVIC, Coir Board and National Small Industries Corporation (NSIC), the Minister emphasized their critical role in enhancing grassroots production, rural livelihoods and India’s export competitiveness.

During his visit to IDEMI Mumbai, Shri Manjhi toured the MSME Technology Centre and reviewed its advanced manufacturing capabilities. He was briefed on IDEMI’s involvement in fabricating components for India’s Chandrayaan space mission, as well as the facility’s use of AR/VR technologies for precision design and simulation. Presentations were also made on the CGTMSE and PM Vishwakarma schemes.

Concluding his address, Shri Manjhi reiterated the government’s commitment to making the MSME sector globally competitive, innovation-driven and inclusive while ensuring it remains a key engine of India’s economic growth and employment.