About 7.83 crore Micro, Small, and Medium Enterprises (MSMEs) have registered on the Udyam Registration portal since 2020. In the same period, 1.37 lakh MSMEs have closed down, accounting for only 0.17% of the total closures. The total employment in these MSMEs stands at 34.50 crore as of February 28, 2026, according to Union MSME Minister Jitin Ram Manjhi’s statement in Lok Sabha.
Various reasons lead to enterprise deregistration, including changes in ownership, unnecessary certificates, duplicate registrations, and enterprise closures. The government supports state and union territories through schemes like the Prime Minister’s Employment Generation Programme and Credit Guarantee Scheme for Micro and Small Enterprises to promote MSME development.
To aid businesses, including MSMEs, during the COVID-19 pandemic, a Rs 5 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) was introduced. By March 31, 2023, 1.13 crore guarantees were extended to MSMEs under this scheme. A State Bank of India report revealed that around 14.6 lakh MSME accounts, predominantly from Micro and Small Enterprises categories, were safeguarded through the ECLGS.
Additionally, non-tax benefits are granted for three years in case of an upward status change in MSMEs. The Self Reliant India (SRI) Fund received a Rs 50,000 crore equity infusion, with Rs 10,000 crore from the Government of India and Rs 40,000 crore from Private Equity/Venture Capital funds. This initiative aims to provide growth capital to eligible units in the MSME sector.
The Ministry of MSME administers the Prime Minister’s Employment Generation Programme (PMEGP), a credit-linked subsidy program fostering self-employment opportunities by establishing micro-enterprises. Notably, 39% of PMEGP beneficiaries are women, receiving a higher subsidy of 35% compared to non-special category beneficiaries.
