Why in News :
India celebrated Udyami Diwas – MSME Day 2025 on June 27 with the theme:
“Enhancing the role of MSMEs as drivers of Sustainable Growth and Innovation.”This aligns with the UN-recognised International MSME Day, acknowledging the sector’s critical role in inclusive development and economic resilience.
Key Highlights and Data Points:
MSME Contribution:
- 30% to India’s GDP
- 45%+ to total exports
- 2nd largest employer after agriculture
Registrations:
- Udyam + Assist Platforms: 5.7 crore enterprises
- PM Vishwakarma registrations: 29.94 lakh (out of 2.71 crore applications
Employment Generation:
- Under PMEGP: 4.6 lakh jobs created in FY 2024–25
- Since 2008: 9.87 lakh enterprises created, 80+ lakh jobs
Procurement:
- Public procurement from MSEs (till Dec 5, 2024): ₹37,190.02 crore
- 38.39% share from 1.15 lakh MSEs (exceeding 25% mandate)
KVI Sector Growth (2014–2024):
- Sales: ↑ from ₹33,135 cr → ₹1,55,673 cr
- Production: ↑ from ₹27,569 cr → ₹1,08,298 cr
Key Government Initiatives (FY 2024–25):
PM Vishwakarma Yojana:
- Focus on traditional artisans and craftspeople
- ₹13,000 crore outlay (2023–2028), training + market linkage + product design
Udyam & Assist Portals:
- Free, paperless MSME registration
- Extend formal benefits to informal micro-enterprises
PMEGP:
- Credit-linked subsidy for self-employment
- Outreach in 11 regional languages
SFURTI:
- Cluster-based support for traditional industries
- 513 approved clusters; 376 functional
Public Procurement Policy (2012):
- 25% procurement mandate, including 4% from SC/ST and 3% from women MSEs
- 358 items reserved for MSEs
MSME-TEAM Scheme (2024):
- Trade enablement, e-commerce onboarding, cataloguing
- Outlay: ₹277.35 crore for 5 lakh MSEs (50% women-led)
Yashasvini Campaign:
- Gender parity in MSMEs by 2029
- In partnership with WEP, MoRD, and NITI Aayog
MSME Hackathon 4.0:
- Innovation + incubation support; up to ₹15 lakh per entrepreneur
CREATE at Leh:
- Tech-based rural enterprise acceleration in high-altitude areas
Key Challenges Facing MSMEs:
- Credit access constraints, especially for micro and women-led units
- Poor digital adoption in rural clusters
- Compliance burden in taxation, labour, and procurement
- Limited participation in global value chains (GVCs)
- Informalisation remains high despite Udyam push
Impact Analysis:
- Inclusive Growth: MSMEs ensure employment at the bottom of the pyramid (rural, women, SC/ST).
- Sustainable Development: Push for green enterprises and energy-efficient production.
- Digital Empowerment: Integration through Udyam/Assist portals, MSME-TEAM, and Hackathons fosters tech inclusion.
- Globalisation: International MoUs with USA, Japan, Taiwan, Egypt, Tajikistan show MSME diplomacy rising.
| UPSC Relevance: GS2: Government Policies and Interventions, Welfare Schemes, E-Governance GS3: Indian Economy, Employment, Inclusive Growth, Industrial Development Mains Practice Questions: Q. “MSMEs are not just the backbone of the Indian economy but also the bridge to inclusive development.” Discuss with reference to recent government schemes and initiatives. |