OVERVIEW OF THE INDIAN MSME (Micro, Small and Medium Enterprises) SECTOR
India’s Micro, Small and Medium Enterprises (MSME) sector is the heartbeat of the nation’s economy. It fuels employment opportunities. Drives industrial growth. Accelerate economic progress and distribute prosperity to every corner of the country. Over 5.9 crore MSMEs employ more than 25 crore Indians—a powerful engine of inclusive development. By spreading industries to rural and backward regions, MSMEs reduce inequality and promote balanced progress.
THE BACKBONE OF INDIA’S INDUSTRY
MSMEs form the base of India's countless value chains. As suppliers to large industries, they strengthen India’s position in the Global Value Chain (GVC). MSME sector need quality innovation, production efficiency at higher scale and digital empowerment to become more competitive. Under the leadership of Prime Minister Narendra Modi, the sector has grown by 15 times in a decade. Now MSMEs contribute nearly 40% of India’s total production and exports. This is a testament to their strength and endurance.
A BUDGET THAT EMPOWERS SMALL BUSINESS
The Union Budget 2025–26 has given MSMEs a powerful boost. Limits for investment and turnover classification have been raised—2.5 times for investment and 2 times for turnover. This expansion encourages enterprises to grow, scale, and compete without restriction. To ease access to credit, the credit guarantee cover has been doubled from ₹5 crore to ₹10 crore. This step unlocks nearly ₹1.5 lakh crore in fresh lending over five years. Export-oriented MSMEs now enjoy term loans up to ₹20 crore with enhanced guarantees.
FOCUS ON SECTORS THAT DRIVE JOBS
The Budget highlights specific industries with high growth and employment potential. The Footwear and Leather Focus Product Scheme will support design, component manufacturing, and non-leather production—creating 22 lakh jobs and ₹4 lakh crore in turnover. For the toy sector, new cluster programs will enhance skills and production capacity. The National Manufacturing Mission under Make in India promotes clean tech manufacturing—boosting output of solar PV cells, EV batteries, wind turbines, and transmission systems.
ALIGNED WITH VIKSIT BHARAT@2047
India’s vision for Viksit Bharat places MSMEs at the centre of the growth story. The focus is on building strong market linkages—locally and globally. Through platforms like the Government e-Marketplace (GeM), MSMEs gain unprecedented access to buyers. Simpler regulations and digital interfaces are making business easier. The goal: elevate Indian MSME products to global standards and power domestic demand alongside booming exports.
DIGITAL MOMENTUM FOR SMALL BUSINESS
Digital India is transforming even the smallest enterprises. From cloud tools to online marketplaces, MSMEs are growing smarter and faster. The MSME Digital Maturity Index rose from 56.6 in 2023 to 58.0 in 2025, showing progress across the nation. Still, adoption varies by industry. With focused financial support and strategic guidance, MSMEs can leap forward—turning digital access into a competitive edge.
GREEN GROWTH AND ESG LEADERSHIP
Profit with purpose is the new business mantra. The MSME Green Investment Initiative, launched by the Ministry of MSME, is driving sustainability-led transformation. It provides both financial and technical support to help small businesses go green. Aligned with India’s Net Zero 2070 mission, this initiative positions MSMEs as the backbone of a cleaner, more resilient industrial future.
ICC’S ROLE IN DRIVING MSME SUCCESS
The Indian Chamber of Commerce (ICC) remains a leading catalyst for MSME growth. Through advocacy, collaboration, and capacity building, ICC strengthens business resilience and competitiveness. By engaging with the Ministry of MSME, state departments, and regulators, ICC champions policies that improve ease of doing business, credit access, and participation in government procurement schemes.
CONNECTING POLICY TO ENTERPRISE
Initiatives like regional MSME Samvaads, including the ICC Rajasthan MSME Samvaad 2025, create direct dialogue between businesses and policymakers. These events bridge the gap between strategy and execution, giving MSMEs quick access to on-ground support. ICC also conducts sector forums and consultations—notably in defence manufacturing—to help MSMEs explore new markets and business models.
BUILDING KNOWLEDGE AND CAPACITY
Knowledge drives transformation. ICC regularly hosts training sessions and awareness programs with partners like MSME-DI and ZED experts. Workshops focus on digital adoption, Industry 4.0 integration, export readiness, and compliance skills. Through these efforts, MSMEs are learning faster, innovating deeper, and competing stronger.
LINKING MSMEs TO NATIONAL SUPPLY CHAINS
In 2025, ICC expanded its industry facilitation programs to help MSMEs join national supply chains—including defence, infrastructure, and global vendor networks. It enables visibility, promotes B2B alliances, and aligns smaller enterprises with India’s national growth goals. ICC’s Working Groups, such as the one on Banking & Finance, address capital access and digital payments issues. Their policy recommendations help ministries refine taxation, credit, and compliance frameworks affecting MSMEs.
FLAGSHIP EVENTS THAT DRIVE IMPACT
ICC’s flagship initiatives—such as the Defense MSME Manufacturers Forum, the ICC MSME Mela, and the MSME Agro International Summit—celebrate innovation, build networks, and expand market reach. Each event amplifies opportunity, strengthens collaboration, and fosters sustainable growth across the MSME landscape.
