Significance of MSME
- 2nd largest employer in india (just behind agriculture)
- Inclusive growth - low capital costs, alleviate poverty in rural area
- infra & social upliftment in rural areas
- Economic Survey 2025-26
- 31.1% of India GDP from MSME
- 35.4% of total manufacturing
- 48.58% exports
Issues with MSME
- missing middle (98% micro; 0.01% medium)
- poor access to financial resources
- WorldBank: 21% MSME face finance issues
- low innovation
- only 5.8% Indian MSME introduce new products
- higher elsewhere
- 24.9% in South Asia
- 36% globally
- infra bottleneck (roads, power supply, digital infra)
- only 1.1% of registered MSME are actually engaged in export
- alone make up 48% of total indian exports