Today, India celebrates National Micro, Small, and Medium Enterprises (MSME) Day, recognizing the significant contribution of this sector to the country’s economy. MSMEs make up over 40% of industrial production and offer a diverse range of products and services, including intermediate goods for larger industries. They are critical to employment generation and form the backbone of the Indian economy.
The Indian government designated National MSME Day in 2001 to showcase the sector’s importance. Since then, the Ministry of MSMEs has implemented various policies to foster a favorable environment for small businesses, including tax exemptions, easier access to loans, and technical guidance for entrepreneurs. The sector contributes substantially to India’s export industry, accounting for over 45% of various sub-domains such as textiles, automotive, and jewelry.
The government has implemented several reforms to support MSME growth, including the Atmanirbhar Bharat Package, which redefined MSME classification based on investment and annual turnover.
The Udyam Registration process simplifies online registration without paperwork or fees, enhancing the ease of doing business. The Champions Portal is an online platform that supports and guides MSMEs through their business journey, while the National SC-ST Hub and SARAS Fund provide opportunities for SC-ST communities to access procurement and equity funding.
The government also mandates that ministries, departments, and CPSEs procure 25% of goods and services from MSMEs, with sub-targets for SC-ST-owned MSMEs and women entrepreneurs.
With continued support and recognition, MSMEs will continue to thrive, driving India’s economic growth and becoming a global economic powerhouse. National MSME Day stands as a testament to the sector’s critical role in India’s economic framework.