The Micro, Small and Medium Enterprises (MSME) Ministry sector continued to play a pivotal role in India’s economic and social development in 2025, reaffirming its position as a key driver of employment generation, entrepreneurship, and inclusive growth. With its capacity to create large-scale employment at relatively low capital cost, the sector supports large industries as ancillary units while promoting industrialisation in rural and backward regions. These efforts help reduce regional imbalances and enable more equitable income distribution. During the year, the MSME Ministry, Government of India, in coordination with its organisations and institutes, strengthened the MSME ecosystem through comprehensive interventions spanning access to credit, technology upgradation, infrastructure development, skilling, market access, and promotion of Khadi, Village, and Coir industries.
The year 2025 proved to be a landmark year for the Ministry, marked by the launch of new initiatives, expansion of flagship schemes and the signing of multiple bilateral Memoranda of Understanding to enhance international cooperation. A major focus area remained the formalisation of enterprises. Since the launch of the Udyam Registration Portal and the Udyam Assist Platform, over 7.30 crore enterprises have been brought into the formal fold between July 2020 and December 2025, enabling easier access to institutional finance, priority sector lending and government support. Further, the Union Budget 2025–26 revised the investment and turnover limits for MSME classification, effective from April 1, 2025, allowing enterprises to scale up operations without losing MSME benefits.
Improving access to credit remained a priority. Under the Prime Minister’s Employment Generation Programme (PMEGP), more than 10.71 lakh micro enterprises have been supported since inception, generating employment for over 87 lakh people. In 2025 alone, over 84,000 new micro enterprises were assisted with margin money subsidy exceeding Rs. 3,125 crore. The Credit Guarantee Scheme for Micro and Small Enterprises crossed the historic milestone of one crore guarantees in its 25th year, with guarantees worth Rs. 3.77 lakh crore approved during 2025. The year also saw enhanced guarantee coverage, rationalised fees and special concessions for enterprises promoted by transgender entrepreneurs. Complementing this, the Self Reliant India (SRI) Fund expanded equity support to high-growth MSMEs, with investments crossing Rs. 1,800 crore since inception.
Significant progress was recorded in infrastructure creation and capacity building. The PM Vishwakarma Scheme achieved its target of 30 lakh registrations within two years, providing artisans and craftspeople with skill training, collateral-free credit, modern toolkits, digital enablement and marketing support. The World Bank-supported RAMP Scheme strengthened institutional capacities at the Centre and State levels, impacting over 10 lakh MSMEs through approved projects across States and Union Territories. The Micro and Small Enterprises Cluster Development Programme continued to enhance competitiveness through common facility centres and industrial infrastructure, while focused interventions supported MSME growth in the North Eastern Region and Sikkim.
Market access initiatives delivered strong outcomes during the year. Central Ministries and CPSEs exceeded the mandated 25 per cent procurement from MSEs, with procurement from MSMEs touching over 43 per cent in value terms. The Procurement and Marketing Support Scheme facilitated participation of thousands of MSMEs in domestic trade fairs and exhibitions. At the India International Trade Fair 2025, the MSME Pavilion themed “Vibrant MSMEs, Viksit Bharat” showcased strong representation from women entrepreneurs, SC/ST enterprises, persons with disabilities and first-time participants, earning national recognition.
Technology adoption and innovation gained momentum through the MSME Champions Scheme, encompassing ZED certification, Lean manufacturing and innovation support. The MSME Hackathon 5.0, launched on MSME Day 2025, attracted over 52,000 innovative ideas, highlighting the growing focus on smart and sustainable MSMEs. Technology Centres across the country continued to provide advanced manufacturing support and skilling, training tens of thousands of youth and assisting MSMEs in engineering, defence and aerospace sectors.
Skilling and entrepreneurship development remained central to the Ministry’s agenda, with thousands of Entrepreneurship Skill Development Programmes conducted during the year. Digital governance was strengthened through initiatives such as the Performance Smartboard dashboard, alignment with PM Gati Shakti, cyber security awareness campaigns and the CHAMPIONS grievance redressal portal, which achieved a resolution rate of over 99 per cent.
The Ministry also recorded notable achievements in the promotion of Khadi, Village Industries and the Coir sector. Khadi and Village Industries witnessed strong growth in production and sales, supported by increased artisan wages, nationwide Khadi Mahotsav campaigns and global outreach. The coir sector reported robust export performance, expanded skill training, new technology development and increased participation in international exhibitions.
Overall, 2025 emerged as a transformative year for the MSME sector, marked by policy reforms, inclusive growth initiatives, technology-led interventions and stronger domestic and global linkages—reinforcing MSMEs as a cornerstone of India’s journey towards a resilient, self-reliant and sustainable economy.
Subscribe our WhatsApp Channel FREE to get regular updates – Click here
Enlist your name FREE in Apparel Manufacturers Directory – Click here
