Ministry of Micro,Small & Medium Enterprises
The MSME Revolution
Transforming India’s Economic Landscape
Posted On: 23 DEC 2024 6:16PM by PIB Delhi
Micro, Small, and Medium Enterprises (MSMEs) exports have witnessed a remarkable rise, increasing from ₹3.95 lakh crore in 2020-21 to ₹12.39 lakh crore in 2024-25, underscoring their critical role in boosting India’s economy and strengthening global trade. The total number of exporting MSMEs in 2024-25 has also increased considerably from 52,849 in 2020-21 to 1,73,350 in 2024-25. [1] MSMEs demonstrated an exemplary growth trajectory, contributing 45.73% to exports in 2023-24, which increased to 45.79% by May 2024, highlighting their growing impact on India’s trade performance.
The MSME sector in India has consistently demonstrated remarkable resilience and adaptability, significantly contributing to the nation’s GDP over the years. The Gross Value Added (GVA) by MSMEs in India’s GDP was 29.7% in 2017-18, rising to 30.1% in both 2022-23. Even amid the unprecedented challenges posed by the COVID-19 pandemic, the sector sustained a contribution of 27.3% in 2020-21, rebounding to 29.6% in 2021-22. These figures highlight the sector’s pivotal role in driving economic growth and stability, reflecting its enduring strength and importance to the Indian economy.[2]
The growth in MSME sector is reflected in the scaling up of small and micro enterprises into medium enterprise. In accordance with the Revised Classification applicable w.e.f 1st July 2020, MSME are classified as below:
- Micro Enterprise: where the investment in plant and machinery or equipment does not exceed one crore rupees and annual turnover does not exceed five crore rupees.
- Small Enterprise: where the investment in plant and machinery or equipment does not exceed ten crore rupees and annual turnover does not exceed fifty crore rupees.
- Medium Enterprise: where the investment in plant and machinery or equipment does not exceed fifty crore rupees and annual turnover does not exceed two hundred and fifty crore rupees.
Between July 1, 2020, and July 24, 2024, a significant number of enterprises transitioned to Medium enterprises. During the financial year 2020-21 to 2021-22, 714 Micro enterprises scaled up to medium and 3,701 Small enterprises were upgraded to Medium enterprises. This number increased steadily with the financial year 2023-24 to 2024-25 witnessing further growth, with 2,372 Micro enterprises and 17,745 Small enterprises scale up to Medium. This progression reflects the robust growth and dynamism of the MSME sector in India.[3]
MSME’s are the backbone of India’s economic landscape, pivotal in employment generation, entrepreneurship promotion, and economic development. Through resilience, innovation, and adaptability, MSMEs have consistently driven the nation’s growth, providing employment to millions and fostering inclusive development. As India strives to position itself as a global economic powerhouse, the MSME sector undoubtedly plays a central role, fostering innovation, generating employment, and enhancing export competitiveness.
References
LOK SABHA UNSTARRED QUESTION No. 2798
LOK SABHA UNSTARRED QUESTION NO. 3557
LOK SABHA UNSTARRED QUESTION NO. 2855
LOK SABHA UN STARRED QUESTION No. 2786
LOK SABHA UNSTARRED QUESTION No. 1621
RAJYA SABHA UN STARRED QUESTION No. 741
https://static.pib.gov.in/WriteReadData/specificdocs/documents/2024/aug/doc2024829382601.pdf
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Santosh Kumar/Ritu Kataria/ Madiha Iqbal
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