India’s MSME sector continues to be one of the country’s biggest economic engines, contributing 31.1% to GDP, 35.4% to manufacturing output and 48.58% to exports, according to the Ministry of MSME. The ministry also said formal registrations on the Udyam Registration Portal and Udyam Assist Platform have crossed 8.7 crore, reflecting the scale and formalisation of the sector.
Why The Numbers Matter
The MSME segment remains central to employment and industrial output, with the ministry saying it supports more than 38.9 crore people. That makes it not just a source of small business activity, but a major contributor to jobs, supply chains and export competitiveness.
The government has also revised the MSME definition from April 1, 2025, giving enterprises more room to grow while retaining access to policy support. That change is aimed at making the sector more scalable without pushing businesses out of the support ecosystem too quickly.
Credit And Support
Access to finance remains a major focus. The Credit Guarantee Fund Trust for Micro and Small Enterprises approved 29.03 lakh guarantees worth Rs 3.77 lakh crore between January and November 2025, and the collateral-free loan guarantee ceiling was doubled from Rs 5 crore to Rs 10 crore.
Digital platforms are also playing a larger role in easing business operations. The MSME Samadhaan portal received 2.56 lakh delayed-payment applications worth Rs 55,244.29 crore, while the CHAMPIONS portal resolved 99.72% of nearly 39,500 grievances in 2025-26.
Traditional Sectors And Procurement
Traditional industries also remained strong, with Khadi and Village Industries recording sales of more than Rs 1.27 lakh crore and coir exports reaching Rs 6,614.40 crore in 2025-26. Government procurement stayed robust as well, with 118 Central Public Sector Enterprises buying goods and services worth Rs 31,443.32 crore in FY 2026-27, and 54.51% of that coming from micro and small enterprises.
Flagship programmes such as PM Vishwakarma and PMEGP have also added momentum. PM Vishwakarma hit its target of 30 lakh registrations in two years, while PMEGP has supported over 10.84 lakh micro-enterprises and generated employment for more than 97 lakh people.
Outlook
The ministry said ongoing reforms, digitalisation, better access to finance, technology adoption and stronger market linkages are making India’s MSME sector more competitive and resilient. With Viksit Bharat 2047 as the long-term goal, the sector is being positioned as a major growth pillar for India’s next phase of development.