MSME Sector Drives India’s Economic Growth: Union Minister Jitan Ram Manjhi

The Micro, Small and Medium Enterprises (MSME) sector continues to be a vital pillar of India’s economy, contributing 30.1% to the GDP, 35.4% of manufacturing output, and 45.73% of exports, said Union MSME Minister Jitan Ram Manjhi during a press conference in Mumbai.

Citing data from the Udyam and Udyam Assist Portals, the Minister revealed that 6.5 crore MSME units are currently registered, collectively generating employment for 28 crore people. He noted a 15-fold increase in MSME registrations over the past five years.

The Udyam Portal, launched in July 2020, now hosts over 3.80 crore units, while the Udyam Assist Platform, launched in January 2023 to integrate informal micro-enterprises into the formal economy, has registered 2.72 crore units.

Manjhi highlighted the impact of key initiatives:

• The Prime Minister Employment Generation Programme (PMEGP) has helped generate employment for over 80.33 lakh people, with 80% beneficiaries in rural India.

• Under the Credit Guarantee Scheme (CGS), over 1.18 crore guarantees worth ₹9.80 lakh crore have been approved to date, including ₹3 lakh crore in FY 2024-25 alone.

• The scheme aims to triple its beneficiaries by 2029, with special focus on women and SC/ST entrepreneurs.

• The Minister also acknowledged the role of MSME support institutions such as KVIC, Coir Board, and NSIC, and praised IDEMI Mumbai for its contributions, including component manufacturing for Chandrayaan and advancements in AR/VR technology.

• Progress in MSME Samadhaan, the portal addressing delayed payments, was also noted, with pending cases reduced from 93,000 in 2017 to 44,000 at present.

The minister reaffirmed the government’s commitment to strengthening the MSME ecosystem and supporting artisans under the PM Vishwakarma scheme, which covers 18 traditional trades.