MSMEs in India
Scale, Significance, and Policy Framework
India's Micro, Small and Medium Enterprises sector is the backbone of the economy, contributing 30.1% of GDP, 35.4% of manufacturing output, and 45.73% of total merchandise exports. The sector employs over 28–31 crore people across approximately 7.16 crore registered units (as of November 2025, Udyam Registration Portal). The MSME Development and Regulation Act, 2006 (amended in 2020) provides the legislative framework, with the 2020 revision revising the classification criteria to include turnover thresholds alongside investment limits, and expanding the definition to include medium enterprises with turnover up to ₹250 crore.
- Micro enterprise: Investment up to ₹1 crore AND turnover up to ₹5 crore
- Small enterprise: Investment up to ₹10 crore AND turnover up to ₹50 crore
- Medium enterprise: Investment up to ₹50 crore AND turnover up to ₹250 crore
- MSME exports (FY2024–25): Approximately ₹12.39 lakh crore (up from ₹3.95 lakh crore in FY2020–21)
- Key MSME clusters: Tiruppur (textiles), Ludhiana (hosiery, bicycles), Rajkot (engineering), Surat (diamonds, textiles), Agra (leather goods)
- Udyam Registration Portal: Digital registration platform launched 2020; basis for MSME subsidies, credit guarantees, government procurement preferences
● Tracked since March 09, 2026 · last seen June 18, 2026 · updates as the daily brief publishes