Over 34 crore people have gained employment through micro, small and medium enterprises (MSMEs) since 2014 via the Udyam and Udyam Assist portals, Union Minister Jitan Ram Manjhi told the Rajya Sabha on Monday.
Responding to a question in the Upper House, the Minister of MSMEs said there is no shortage of funds or workers in the sector. He also cited examples of traditional workers, such as cobblers, who have received financial support under schemes like the PM Vishwakarma Yojana.
The government considers MSMEs the backbone of India’s industrial growth and has undertaken a series of measures to strengthen the sector. One major step was the revision of the MSME definition after 14 years, aimed at removing the fear of losing government benefits due to business expansion. The revised definition also makes access to credit easier.
The number of MSMEs in India has crossed 6 crore, the minister said, adding that lending to the sector has surged from ₹12 lakh crore a decade ago to around ₹30 lakh crore.
In his Budget speech, Prime Minister Narendra Modi had announced that the guarantee cover for MSME loans would be doubled to ₹20 crore. The government also plans to roll out customised credit cards with a ₹5 lakh limit to meet working capital needs.
Meanwhile, NITI Aayog has released a report suggesting systemic reforms in financing, skilling, innovation, and market access to unlock the sector’s full potential. It said MSMEs can become a key driver of sustainable growth through targeted interventions and stronger institutional support.
Between 2020 and 2024, the share of micro and small enterprises accessing credit through scheduled banks rose from 14% to 20%, while access among medium enterprises increased from 4% to 9%, the report noted.