Women-led enterprises now account for 39% of India’s registered MSMEs, and the government wants that share to rise to 50%, according to MSME Secretary Bharat Khera. Speaking at an event organised by India SME Forum with Google India, Khera said the next phase of MSME growth must be built on wider participation, stronger formalisation and faster technology adoption.
Women Entrepreneurs In Focus
Khera said entrepreneurship opportunities must increasingly reach tier-2 and tier-3 cities, where the next wave of business growth is likely to come from. He said women-led enterprises are already a major part of India’s MSME base, but there is still room to deepen their role in the broader economy.
He also highlighted the sector’s overall importance, noting that MSMEs contribute nearly one-third of India’s GDP, about 35% of manufacturing output and around 50% of exports. The sector remains the country’s second-largest employer after agriculture, which makes its expansion especially important for jobs and inclusion.
Formalisation Gains Speed
A major shift in the sector has been the rapid rise in formal registration. Khera said Udyam registrations have jumped from 1.6 crore four years ago to 8.8 crore today, showing that more enterprises are moving into the formal economy.
That formalisation is important because it improves access to policy support, financing and market linkages. It also gives the government and ecosystem partners a better view of how MSMEs are growing and where support is most needed.
Tech And AI Adoption
Khera said technology enablement will be just as important as formalisation. Referring to the growth of e-commerce, he said India’s digital marketplaces are set to expand sharply and could open up major supply opportunities for MSMEs.
He also argued that artificial intelligence will become essential for small businesses, adding that no enterprise will be able to survive without using such tools. He urged technology companies like Google to help MSMEs become more tech-enabled and adopt AI-driven solutions that can improve productivity and competitiveness.
Credit And Cash Flow
On financing, Khera said MSME credit has expanded from about ₹10 lakh crore a decade ago to ₹37 lakh crore today. He credited government-backed support schemes, including the Credit Guarantee Scheme for Micro and Small Enterprises, which has extended guarantees worth ₹14 lakh crore.
He also pointed to the Self-Reliant India Fund, where a ₹10,000 crore government contribution helped attract private capital and build a ₹50,000 crore corpus for equity support. At the same time, he flagged delayed payments as a major pain point that continues to hurt liquidity and working capital cycles.
TReDS And Faster Payments
To address payment delays, the government has stepped up its focus on TReDS. Khera said the platform has now been linked with GeM, making it easier to discount invoices generated through government procurement.
He also said that as of June 30, all central public sector enterprises must route MSME transactions through TReDS. The move is intended to improve payment transparency, speed up settlements and reduce the cash-flow stress that often affects smaller suppliers.