India’s employment market and economy depend heavily on its Micro, Small, and Medium-Sized Enterprises (MSMEs). According to Union Minister Jitan Ram Manjhi, this sector employs 28 crore people and contributes 30.1% of India’s GDP. There are roughly 6.52 crore registered units as well. This illustrates the critical role MSMEs play in driving India’s development.
MSMEs Contribute Over 30% to GDP
Given that it contributes 30.1% of India’s GDP, the MSME sector is vital to the nation’s economy. This industry includes supply chains in the food processing, textile, pharmaceutical, and logistics industries as well as traditional industries and tech startups. MSMEs are crucial for both local demand and global competitiveness because they boost domestic consumption and aid in India’s exports.
28 Crore Jobs Across India’s MSME Ecosystem
With over 280 million employees, MSMEs are the second-largest employer after agriculture. Cities and communities rely on small and medium-sized enterprises (MSMEs) to create jobs. This ensures that everyone gains from development and encourages local economic progress.
According to Minister Manjhi, MSMEs provide employment opportunities for a variety of individuals, such as women, young people, craftspeople, and independent contractors. They are therefore essential to long-term, fair development.
6.52 Crore Registered MSME Units and Counting
As of mid-2025, the Udyam portal has recorded 6.52 crore MSME units, reflecting significant formalisation within the sector. These units cover a range of industries, manufacturing, services, retail, and agro-based enterprises providing flexibility, innovation, and regional resilience to the Indian economy.
The majority of these businesses operate in Tier 2 and Tier 3 cities, playing a vital role in decentralised economic development.
Digitisation, Finance, and Reform
The economy depends heavily on micro, small, and medium-sized businesses (MSMEs), but they confront a number of challenges, including as limited access to digital skills, higher legal and tax-related fees, and trouble getting business loans.
The government is concentrating on facilitating financial access, promoting digital technology, and simplifying business processes in order to help. This includes support for digital learning, incentives for green projects, and credit schemes like the CGTMSE.
In order to build a powerful, inclusive, and self-sufficient India, Union Minister Jitan Ram Manjhi stressed the importance of strengthening MSMEs. Encouraging this sector is essential to achieving the nation’s $5 trillion economic goal.
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