The Ministry of Micro, Small and Medium
Enterprises (MSME) is the apex body in the Government of India responsible for
formulating and administering rules, regulations, and laws related to micro,
small, and medium enterprises in India. The MSME sector is a significant
contributor to India's socio-economic development, playing a crucial role in
the country's GDP and exports, and fostering entrepreneurship, especially in
semi-urban and rural areas.
The definition of MSMEs in India has been revised
under the Aatma Nirbhay Bharat Abhiyaan Scheme. The new classification,
effective from July 1, 2020, is based on investment in plant and machinery and
turnover.
The Union Budget for FY26 has raised the
investment limits for MSMEs by 2.5 times and doubled the turnover thresholds.
The new limits are as follows:
As of December 2024, 5.70 crore MSMEs, with an
employment of 24.14 crore are registered on Udyam Registration Portal and Udyam
Assist Platform (UAP).
The MSME Ministry heads several statutory bodies
that support MSMEs with government schemes and policies.
These include:
Key Bodies and Schemes
- For micro-enterprises, the investment limit is now Rs. 2.5 crore (US$ 0.3 million), with a turnover limit of Rs. 10 crore (US$ 1.2 million).
- For small enterprises, the investment limit has been set at Rs. 25 crore (US$ 2.9 million), and the turnover limit is Rs. 100 crore (US$ 11.5 million).
- For medium enterprises, the investment limit is now Rs. 125 crore (US$ 14.4 million), while the turnover limit stands at Rs. 500 crore (US$ 57.6 million).
- Khadi and Village Industries Commission (KVIC)
- Coir Board
- National Small Industries Corporation (NSIC)
- National Institute for Micro, Small and Medium Enterprises (NI-MSME)
- Mahatma Gandhi Institute for Rural Industrialisation (MGIRI)
- MSME exports have increased significantly, from Rs. 3.95 lakh crore (US$ 45.5 billion) in CY21 to Rs. 12.39 lakh crore in CY25.
- The government is focusing on digital payments, with 72% of payments done through digital modes.
- The Union Ministry of Micro, Small, and Medium Enterprises has received an allocation of Rs. 23,168 crores in FY26 Union Budget, reflecting a 4.6% increase compared to the FY25 Budget.
- The government is also supporting women entrepreneurs, with women-owned businesses making up over 38% of the registered MSMEs under the RAMP scheme.
Recent Developments and Initiatives
The government has launched various schemes to
support MSMEs, including the Pradhan Mantri Mudra Yojana (PMMY), under which
Rs. 4.14 lakh crore (US$ 47.6 billion) was sanctioned in FY25 (until February
21, 2025) under 4.2 crore Mudra loans to non-corporate and non-farm MSEs. The
"Raising and Accelerating MSME Performance" (RAMP) scheme, launched
in 2022, has benefited 4 lakh micro, small, and medium enterprises. The
Prime Minister’s Employment Generation Programme (PMEGP) has created
approximately 8 million jobs and supported over 9.65 lakh micro enterprises
since its inception in FY09.
The India SME Forum is organizing the International MSME Day Conclave 2025 to celebrate and empower MSMEs, focusing on international growth and strengthening the MSME ecosystem.