Advantage India
Sector
Overview
* As of May 2025, 6.44 crore MSMEs, with an employment of 26.77 crore are registered on Udyam Registration Portal and Udyam Assist Platform (UAP).
* The Union Ministry of Micro, Small, and Medium Enterprises has received an allocation of Rs. 23,168 crore in FY26 Union Budget, reflecting a 4.6% increase compared to the FY25 Budget.
Statutory
Bodies
* The MSME Ministry heads five statutory bodies; KVIC, Coir Board, NSIC, NI-MSME and the MGIRI
* These bodies are responsible for aiding MSMEs with respect to government schemes and policies.
Government
Schemes
* Under Pradhan Mantri Mudra Yojana (PMMY), In FY25 (until 21st February 2025), Rs. 4.14 lakh crore (US$ 47.6 billion) was sanctioned 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 benefitted 4 lakh micro, small, and medium enterprises, with women-owned businesses making up over 38% of the registered MSMEs, highlighting the government's focus on empowering female entrepreneurs.
Policy
Support
* The Union Budget for FY26 has raised the investment limits for MSMEs by 2.5 times and doubled the turnover thresholds. Specifically, the new limits are as follows:
1. 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).
2. 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).
3. 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).
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