MSME sector accounts for 30.1% of India’s GDP, 45.73% of exports: Union minister

Union Minister Jitan Ram Manjhi on Friday said that the Micro, Small and Medium Enterprises (MSME) sector accounts for 30.1% of the country’s GDP, underlining its role as the second highest contributor to the Indian economy.

Addressing a press conference in Mumbai, Manjhi said that MSMEs account for 35.4% of manufacturing and 45.73% of exports in the country.

He said the Udyam portal, launched in July 2020 to offer free, paperless and self-declared registration for MSMEs, has over 3.80 crore units in its database.

The Udyam Assist Portal, launched in January 2023 to support informal micro enterprises by facilitating their access to formal benefits such as Priority Sector Lending, has over 2.72 crore units registered.

These 6.5 crore MSME units have together provided employment opportunities to 28 crore people till date, Manjhi said, adding that the number of MSME units has increased fifteen times in the last five years.

Speaking about the PM Vishwakarma scheme, he said it provides end-to-end support to artisans and craftspeople from 18 trades working with their hands and tools.

Manjhi said the Prime Minister Employment Generation Programme (PMEGP) has assisted 80.33 lakh people to gain employment, with 80% of them in rural areas.

Over 1.18 crore credit guarantees worth Rs 9.80 lakh crore have been approved under the Credit Guarantee Scheme (CGS) since its inception by Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), with a record Rs 3 lakh crore worth of credit guarantees extended in FY 2024-25 alone.

“The number of beneficiaries of the Credit Guarantee Scheme will increase three times by 2029,” the minister said, adding that special benefits are given to women and SC/ST entrepreneurs under the scheme.

He said that the number of cases registered on the MSME Samadhaan portal for delayed payments has come down to 44,000 from 93,000 in October 2017.

Manjhi said organisations under the MSME Ministry, including KVIC, Coir Board and National Small Industries Corporation Ltd, are working efficiently to implement schemes for small industries and village products.