MSMEs are powering India's growth story. Through sustained reforms, digitalisation and targeted support, millions of enterprises are gaining greater access to finance, technology, skills and markets. The sector's expanding contribution to employment, manufacturing and exports underscores its growing significance. As India advances towards Viksit Bharat 2047, the sector will continue to play a pivotal role in driving employment, entrepreneurship and sustainable economic development.
In every corner of India, enterprises take a different form. It could be a weaver preserving generations of craftsmanship, a small manufacturer serving global markets, a woman entrepreneur building a business, or a young innovator building a startup. Diverse in scale and sector yet united in spirit, these millions of enterprises form the foundation of India's MSME ecosystem.
Today, MSMEs are far more than business enterprises. They are engines of employment, innovation and inclusive growth, creating opportunities across rural and urban India alike. Driven by formalisation, digital transformation and sustained policy interventions, the sector continues to expand. It is strengthening its contribution to the economy while advancing the vision of Aatmanirbhar Bharat and Viksit Bharat 2047. From enterprise to empowerment, the MSME story is increasingly becoming a story of India's growth and transformation.
MSMEs today play a pivotal role in driving India's economic growth and industrial development. Reflecting their expanding role in the economy, the Government revised the definition of MSMEs with effect from 1 April 2025. Based on investment and annual turnover, it provides enterprises greater room to expand while continuing to benefit from policy support.
The January 2026 data shows that the sector contributes about 31.1% in GDP, 35.4% in manufacturing output and 48.58% in exports. With more than 38.9 crore people employed, MSMEs are the second-largest source of employment after agriculture.
Beyond economic indicators, MSMEs are nurturing a vibrant entrepreneurial culture across the country. The sector has emerged as a gateway for first-generation entrepreneurs, women-led enterprises and youth-led ventures, particularly in semi-urban and rural areas. This transformation is being reinforced by a series of enabling reforms. Initiatives such as the digital Credit Assessment Model and enhanced equity support to SIDBI are expanding their access to formal finance.
The year 2025-26 marked a significant chapter in India's MSME growth story. It witnessed several landmark achievements that strengthened India's MSME ecosystem across formalisation, credit access, technology adoption, grievance redressal and market development.
Registrations under the Udyam Registration Portal and Udyam Assist Platform crossed 8.7 Crore as on June 2026.
The expansion of the formal enterprise base improved access to institutional finance, government schemes and market opportunities for millions of micro and small businesses.
The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) completed 25 years of operation.
29.03 lakh guarantees have been approved amounting to ₹3.77 lakh crore during the period 1st January to 30th November, 2025.
To improve credit availability, the guarantee coverage ceiling was enhanced from ₹5 crore to ₹10 crore, enabling larger collateral-free support for MSMEs.
Khadi and Village Industries& Coir Sector Scale New Heights.
Sales of Khadi and Village Industries crossed ₹1.27 lakh crore during the year.
