Role of MSME Sector in the Country

Aug 08: As per the latest information received from the Ministry of Statistics & Programme Implementation, the share of MSME Gross Value Added (GVA) in all of India’s Gross Domestic Product (GDP) during the year 2019-20, 2020-21 and 2021-22 was 30.5%, 27.2% and 29.2% respectively. The share of MSME manufacturing output in all India Manufacturing output during the year 2019-20, 2020-21 and 2021-22 was 36.6%, 36.9% and 36.2% respectively.

As per the information received from the Directorate General of Commercial Intelligence and Statistics (DGCIS), the share of export of MSME specified products in all India exports during the year 2020-21, 2021-22 and 2022-23 was 49.4%, 45.0% and 43.6% respectively.

As of 02.08.2023, as per Udyam Registration Portal, the total number of persons employed in MSMEs that were registered from 01.07.2020 to 01.08.2023 in India was 12,36,15,681. The State/UT-wise details are attached as Annexure I.

The Ministry of Micro, Small and Medium Enterprises implements various schemes for the growth and development of the MSME sector in the country in areas of credit support, new enterprise development, formalization, technological assistance, infrastructure development, skill development and training and market assistance to MSMEs. The schemes/programmes inter alia include Prime Minister’s Employment Generation Programme (PMEGP), Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE), Micro and Small Enterprises-Cluster Development Programme (MSE-CDP), Entrepreneurship Skill Development Programme (ESDP), Procurement and Marketing Support Scheme (PMS) and National SC/ST Hub (NSSH).

The Government has taken a number of recent initiatives to support MSMEs in the country, including;

  1. Rs. 5 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for businesses, including MSMEs.
  2. Rs. 50,000 crore equity infusion through MSME Self-Reliant India Fund.
  3. Newly revised criteria for the classification of MSMEs.
  4. No global tenders for procurement up to Rs. 200 crores.
  5. Launching of an online Portal “Champions” in June 2020 to cover many aspects of e-governance including grievance redress and handholding of MSMEs.
  6. Inclusion of Retail and Wholesale trades as MSMEs w.e.f. 02nd July 2021.
  7. Non-tax benefits are extended for 3 years in case of an upward change in the status of MSMEs.
  8. Roll out of Raising and Accelerating MSME Performance (RAMP) programme with an outlay of Rs. 6,000 crore over 5 years.
  9. Launch of Udyam Assist Platform (UAP) on 11.01.2023 to bring the Informal Micro Enterprises (IMEs) under the formal ambit for availing the benefit under Priority Sector Lending (PSL).

State/UT wise Total no. of persons employed in MSMEs Registered Under Udyam Registration Portal

S.No.State/UT Name2020-21*2021-222022-232023-24#Total
1ANDHRA PRADESH709811123131127454957275685414185
2ARUNACHAL PRADESH146942015235406867778929
9HIMACHAL PRADESH140826175196199516118312633850
13MADHYA PRADESH826879140097118230415241484575039
23TAMIL NADU333523640549344662649147486013527679
26UTTAR PRADESH209095128325124171713220967511304851
28WEST BENGAL1107009204984929326847525106842052
29ANDAMAN AND NICOBAR ISLANDS10248173158357825491224679
32JAMMU AND KASHMIR1909023856086985512346691509730
36THE DADRA AND NAGAR HAVELI AND DAMAN AND DIU66442476434278312397169265
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