MSME Sector Drives 30.1% of India’s GDP and Creates 28 Crore Jobs, Says Union Minister Jitan Ram Manjhi

Mumbai, 4 July 2025: In a significant revelation underlining the strength of grassroots enterprise, Union Minister for Micro, Small & Medium Enterprises (MSME), Shri Jitan Ram Manjhi, announced that the MSME sector now contributes 30.1% to India’s GDP. The sector also plays a key role in national output and trade, contributing 35.4% to manufacturing and 45.73% to exports.

Speaking at a press briefing following a review of key institutions like IDEMI and KVIC in Mumbai, the Minister underscored how MSMEs have become essential to India’s inclusive growth and employment generation.

MSMEs Lead Economic Participation with Over 6.5 Crore Units and 28 Crore Jobs

The Minister shared that as of now, 6.52 crore MSME units are registered under both the Udyam and Udyam Assist platforms. These enterprises collectively support around 28 crore jobs across the country, reaffirming their vital role in job creation and entrepreneurship at scale.

15-Fold Growth in MSME Registrations Reflects Rising Formalisation

The government’s push for formalisation has yielded remarkable results. Since the launch of the Udyam Portal on July 1, 2020, registrations have surged past 3.80 crore. Meanwhile, the Udyam Assist Platform, introduced on January 11, 2023, has brought 2.72 crore informal micro enterprises into the formal fold, marking a 15-fold increase in registrations over the past five years.

PMEGP Enables Over 80 Lakh Jobs, with 80% Impact in Rural India

The Prime Minister’s Employment Generation Programme (PMEGP) has generated 80.33 lakh jobs, with 80% of these created in rural areas. This demonstrates the programme’s critical role in boosting employment and entrepreneurship beyond urban centres.

₹9.80 Lakh Crore Worth Credit Guarantees Fuel MSME Growth

The Credit Guarantee Scheme (CGS) has so far facilitated guarantees worth ₹9.80 lakh crore since its inception. In FY24-25 alone, ₹3 lakh crore worth of guarantees were approved. The scheme has supported 1.18 crore MSMEs and is projected to triple its beneficiaries by 2029, with particular focus on women and entrepreneurs from SC/ST communities.

Delayed Payment Cases Fall Sharply, Signalling Policy Effectiveness

Under the MSME Samadhaan initiative, unresolved delayed payment cases have dropped from 93,000 in October 2017 to 44,000 at present—a direct result of policy reforms and stronger dispute resolution mechanisms.

Institutes like IDEMI and KVIC Catalyse Innovation and Rural Industry

The Minister praised institutions such as IDEMI Mumbai for their role in India’s space sector by manufacturing components for the Chandrayaan mission. He also reviewed their advanced AR/VR labs and ongoing tech development. Organisations like KVIC, NSIC, and the Coir Board continue to uplift rural and small-scale industries through targeted interventions.

PM Vishwakarma Yojana Empowers Traditional Artisans Across 18 Trades

Highlighting artisan empowerment, the Minister reiterated the government’s commitment to supporting traditional craftsmanship under the PM Vishwakarma Yojana, which covers 18 traditional trades and aims to integrate artisans into the national growth framework.

MSME Ministry Reinforces India’s Industrial Backbone and Export Strength

The Ministry of Micro, Small and Medium Enterprises remains a cornerstone in India’s economic framework, fostering self-employment, industrial resilience, and export readiness. With continued reforms and support schemes, the sector is poised to play an even greater role in India’s long-term economic strategy.

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