MSME Industry in India

With 63.4 million units spread across the country, the MSME sector contributes around 6.11% of the manufacturing GDP and 24.63% of the GDP from service activities.

Advantage India

Sector
Overview

*As of September 2025, 6.82 crore MSMEs, with an employment of 29.77 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 (US$ 2.7 billion) 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), As of April 2025, over Rs. 33,65,000 crore (US$ 390.87 billion) was sanctioned under 52.37 crore Mudra loans to entrepreneurs of SMEs, particularly those belonging to marginal sections of society.

*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).​

Last updated: Oct, 2025

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