Micro, Small, and Medium-sized Enterprises (MSMEs) are crucial for India’s economic progress, contributing significantly to the GDP, manufacturing output, and exports. With over 38.9 crore people employed, MSMEs rank as the second-largest employment provider after agriculture. The United Nations has marked June 27 as MSME Day to highlight their role in achieving Sustainable Development Goals.
The year 2025-26 marked a significant period for India’s MSME sector, witnessing key advancements in formalization, credit accessibility, technology adoption, grievance redressal, and market expansion. Registrations on the Udyam Registration Portal and Udyam Assist Platform surpassed 8.7 crore, enhancing access to finance, government schemes, and market opportunities for millions of micro and small businesses.
During January 1-November 30, 2025, the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) approved 29.03 lakh guarantees totaling Rs 3.77 lakh crore. To boost credit availability, the guarantee coverage limit was raised from Rs 5 crore to Rs 10 crore, providing more collateral-free support to MSMEs.
Sales of Khadi and Village Industries exceeded Rs 1.27 lakh crore, showcasing a growing demand for locally made products and the rising significance of rural enterprises in job creation. The MSME Samadhaan Portal tackled delayed payment issues, receiving over 2.56 lakh applications involving claims worth Rs 55,244.29 crore by June 2026.
The Champions Portal enhanced grievance redressal, resolving 99.72% of the 39,494 grievances received during 2025-26. The government introduced the Online Dispute Resolution (ODR) Portal to address delayed payments for MSEs and provide a tech-enabled ODR platform. MSMEs are not just economic contributors but also foster an entrepreneurial spirit, especially among first-generation entrepreneurs, women-led businesses, and youth-led ventures in semi-urban and rural regions.
Various reforms, like the digital Credit Assessment Model and increased equity support to SIDBI, are expanding MSMEs’ access to formal finance, reinforcing their growth trajectory.
