MSME Day, observed on June 27, honours the vital role that Micro, Small, and Medium Enterprises play in driving innovation, employment, and inclusive economic growth. From local artisans to emerging tech startups, MSMEs are the backbone of resilient economies. This day highlights their achievements and challenges, while underscoring the critical need for policy support, financial inclusion, and digital transformation to help them thrive in an increasingly competitive world.
Designated by the United Nations in 2017, the day serves as a reminder of the importance of supporting and empowering small businesses as engines of resilience and development—particularly in a post-pandemic, digitally evolving world.
Globally, MSMEs account for 90% of all businesses, contribute 60–70% of employment, and generate half of the world’s GDP, according to UN estimates. In India, the sector holds even greater relevance—contributing nearly 30% to GDP, 45% of exports, and ranking second only to agriculture in employment generation.
This year, the Ministry of MSME is celebrating ‘Udyami Bharat – MSME Day.’ The theme for 2025 focuses on “Enhancing the role of MSMEs as drivers of Sustainable Growth and Innovation.”
Key government schemes
The Ministry reported that India is home to over 6.3 crore MSMEs, spanning manufacturing, trade, and services. Several flagship initiatives are underway to support the sector’s growth.
PM Vishwakarma, launched in September 2023 with an outlay of ₹13,000 crore, aims to enhance the skills and market access of traditional artisans and craftspeople. As of June 26, 2025, more than 2.71 crore applications had been submitted under the scheme, with nearly 30 lakh beneficiaries registered.
The Udyam Registration Portal, introduced in July 2020, provides free, paperless registration for MSMEs. To extend formal benefits to informal businesses, the Udyam Assist Platform was launched in January 2023.
Job creation and credit access
The Prime Minister’s Employment Generation Programme (PMEGP), a credit-linked subsidy scheme, continues to promote self-employment by supporting the setup of micro-enterprises. Since its launch in 2008, it has aided more than 9.87 lakh units, generating over 80 lakh jobs with subsidies exceeding ₹26,000 crore. In FY 2024-25 alone, 58,028 new units were set up, creating employment for over 4.6 lakh people.
Support for traditional industries
The Scheme of Fund for Regeneration of Traditional Industries (SFURTI), which clusters artisans for competitiveness and sustainable income, has approved 513 clusters, of which 376 are functional. In 2023-24, 18 new clusters benefited nearly 12,000 artisans across 11 states.
The Khadi and Village Industries sector has also seen rapid expansion. Sales have grown from ₹33,135 crore in 2014-15 to ₹1.55 lakh crore in 2023-24. Production has tripled in the same period, reaching over ₹1.08 lakh crore last fiscal.
Boosting public procurement
To enhance market access, the Public Procurement Policy mandates that 25 per cent of procurement by Central Public Sector Enterprises (CPSEs) be sourced from MSEs, including 4 per cent from SC/ST-owned and 3 per cent from women-owned businesses. In FY 2024-25 (as on December 5), CPSEs and departments procured goods worth ₹37,190 crore from 1.15 lakh MSEs—well above the target.
Global outreach and partnerships
The Ministry also focused on strengthening international partnerships. In 2024, India signed MoUs with Japan, Taiwan, Tajikistan, Egypt, and the US to support MSME development, training, and technology exchange. Key engagements included a Joint Working Group with Japan, collaboration with the US EXIM Bank, and a partnership with Taiwan’s ITRI.
New initiatives and digital campaigns
A series of 2024 campaigns and programmes targeted MSME digitisation and inclusion. The Special Campaign 4.0 in October cleared backlogs, freed up 43,342 sq ft of space, and generated ₹21.84 lakh through disposal of obsolete materials.
The MSME-TEAM Scheme, launched on June 27, 2024, has an outlay of ₹277 crore to support five lakh micro and small enterprises, half of them led by women, with digital onboarding, logistics, and packaging support.
The Yashasvini Campaign, also launched this June, aims to formalise and support women-led enterprises in partnership with NITI Aayog and the Ministry of Rural Development.
The MSME Hackathon 4.0, launched in September 2024, is providing funding of up to ₹15 lakh to 500 young innovators. Additionally, the new Centre for Rural Enterprise Acceleration through Technology (CREATE) was inaugurated in Leh to support enterprise in the Himalayan region.
MSMEs are transforming India’s growth by driving innovation, creating jobs, and empowering local communities—especially in rural and semi-urban areas. With policy support, digital tools, and new market access, they are key to sustainable, inclusive development.
MSME Day is not just a celebration; it’s a reflection of how small businesses are shaping a self-reliant and future-ready India.