Development of MSME in the country

 Towards achieving the ‘Viksit Bharat’ objective, the Ministry of Micro, Small and Medium Enterprises implements various schemes for the benefit of MSME sector across the country in the areas of formalization, technological assistance, infrastructure development, credit support, sustainable practices, skill development and training and market assistance to MSMEs. The schemes/programmes inter alia include Prime Minister’s Employment Generation Programme (PMEGP), MSME Champions Scheme, Credit Guarantee Scheme for Micro and Small Enterprises (CGTMSE), Entrepreneurship Skill Development Programme (ESDP), Micro and Small Enterprises-Cluster Development Programme (MSE-CDP), Procurement and Marketing Support Scheme (PMS) and National SC/ST Hub (NSSH).

In the recent past, Government has taken a number of initiatives to promote the MSME sector in the country, which inter alia include the following.

1. Revised criteria for classification of MSMEs to promote investment.
2. “Udyam Registration” for MSMEs, for Ease of Doing Business w.e.f. 01.07.2020.
3. Launch of Udyam Assist Platform (UAP) on 11.01.2023 to bring the Informal Micro Enterprises (IMEs) under the formal ambit for availing the benefit under Priority Sector Lending (PSL).
4. Roll out of Raising and Accelerating MSME Performance (RAMP) programme with an outlay of Rs. 6,000 crore over 5 years.
5. Launch of MSME Champions scheme with the objective to modernize MSMEs’ manufacturing processes, reduce wastages, encourage innovativeness, sharpen business competitiveness and facilitate their National and Global reach and excellence. Components under the MSME Champions scheme are MSME-Sustainable (ZED), MSME-Competitive (Lean) and MSME-Innovative. MSME Sustainable (ZED) Certification Scheme encourages MSMEs to improve their processes and systems to enhance quality and also move towards sustainability.
6. Expanding the network of Technology Centres across the country through ‘Technology Centre Systems Programme’ and ‘Establishment of new Technology Centres / Extension Centres’ to provide technology support to MSMEs, support import substitution and imparting high-end skilling.
7. Launching of an online Portal “Champions” in June, 2020 to cover many aspects of e-governance including redressing grievances and handholding of MSMEs.
8. Rs. 5 lakh crore Emergency Credit Line Guarantee Scheme for business, including MSMEs.
9. Rs. 50,000 crore equity infusion through Self Reliant India Fund.
10. No global tenders for procurement up to Rs. 200 crores.
11. Inclusion of Retail and Wholesale traders as MSMEs on 02.07.2021.
12. Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs.
13. As announced in Budget 2023-24, Rs. 9,000 crore has been infused in the corpus of CGTMSE to enable additional credit of Rs. 2 lakh crore with a reduced cost of credit.

As per the information received from Ministry of Statistics and Programme Implementation, the share of MSME Gross Value Added (GVA) in All India Gross Domestic Product (GDP) are as follows:

Year	Share of MSME GVA in All India GDP (in %)
2017-18	29.69%
2018-19	30.50%
2019-20	30.48%
2020-21	27.24%
2021-22	29.15%

As per the information culled out from the Data Dissemination Portal of Directorate General of Commercial Intelligence and Statistics (DGCIS), the share of MSME related product exports in All India Exports during the last five years are as follows:

Year	Share of MSME related Product exports in All India Exports (in %)
2019-20	49.77%
2020-21	49.35%
2021-22	45.03%
2022-23	43.59%
2023-24 (Up to November, 2023)	45.83%

As per Udyam Registration portal (since inception on 01.07.2020 upto 30.01.2024), number of MSMEs registered under the National Industrial Classification (NIC) code 26305, ‘Manufacture of pagers, cellular phones and other mobile communication equipment’ is given below.

NIC code	Description	Number of MSMEs registered
		Micro	Small	Medium	Total
26305	Manufacture of pagers, cellular phones and other mobile communication equipment	16,377	409	41	16,827

The Department of Commerce, Ministry of Commerce and Industry has informed that mobile phone manufacturing is predominantly characterized by large-scale operations. However, companies potentially classifiable as MSMEs are engaging in manufacturing feature phones in India. These companies primarily serve the lower end of the feature phone market. From a scenario where about 78% of the domestic demand by value was dependent on imports, the country has progressed to a stage where approximately 96% of mobile phones consumed domestically by value are now produced locally. This shift highlights the substantial growth in indigenous manufacturing capabilities.

The Department of Commerce, Ministry of Commerce and Industry has informed that currently, the core components of mobile phones, specifically active and passive components, are primarily being imported into India. Active components include semiconductors, diodes, and transistors and passive components include inductors, resistors, and capacitors. The import value of these core components is estimated to be approximately USD 15-18 billion per year.

Procurement of goods from SCs/STs and women entrepreneurs

 In accordance with the Public Procurement Policy for Micro and Small Enterprises (MSEs) Order, 2012, an annual procurement of 25% has to be made by Central Ministries/ Government Departments/ Central Public Sector Enterprises (CPSEs) from MSEs, including a procurement of 4% from MSEs owned by Scheduled Castes/Scheduled Tribes entrepreneurs and 3% from MSEs owned by Women entrepreneurs. In the F.Y. 2022-23, the procurement from MSEs was 37.14%. The details of annual procurement of goods and services from MSEs during the last five years and the current year are given below:

Financial Year	Total Procurement (Rs. in Crores)	Total Procurement from MSEs (Rs.in Crores)	Procurement from MSEs owned by SC/ST Entrepreneurs (Rs.in Crores)	Procurement MSEs owned by Women Entrepreneurs (Rs.in Crores)
2018-19 (166 CPSEs)	1,53,484.51	40,399.70	824.71	232.56
2019-20 (152 CPSEs)	1,31,460.68	39,037.13	691.43	393.51
2020-21 (161 CPSEs)	1,39,419.81	40,717.67	768.53	749.2
2021-22 (162 CPSEs)	1,65,383.04	53,778.58	1,302.50	1,713.27
2022-23 (165 CPSEs & 02 Deptt.)	1,74,252.39	64,724.98	1,545.30	2,315.61
2023-24 (117 CPSEs & 01 Deptt.) (upto 30th January, 2024)	1,33,553.26	44,591.93	852.67	1,439.37

• Source: MSME SAMBANDH Portal (as on 30.01.2024)

(d):      The details of the total number of MSEs benefitted from Financial Year 2018-19 till 2023-24 are given as under:

Financial Year	Total Benefited MSEs
2018-19	1,29,562
2019-20	1,61,436
2020-21	1,82,734
2021-22	2,38,432
2022-23	2,52,981
2023-24 (upto 30th January, 2024)	1,74,639

• Source: MSME SAMBANDH Portal (as on 30.01.2024)

Credit for Micro Small and Medium Enterprises

 The Government has taken various measures including ongoing schemes to facilitate access to credit to MSMEs in the country. Some of these include the following:

• • Prime Minister’s Employment Generation Programme (PMEGP) which is a major credit-linkedsubsidyprogrammeaimed at generatingself-employment;
• • Pradhan Mantri Mudra Yojna (PMMY) for providing loans up to Rs. 10 lakh to the non- corporate, non-farm small/micro enterprises;
• • PM Vishwakarma Scheme: A Central Sector Scheme with budget outlay of Rs. 13,000 crore for its implementation during the period of 2023-24 to 2027-28. The scheme envisages to provide end-to-end holistic support including credit support, to artisans and craftspeople who work with their hands, using tools, in the 18 trades covered.
• • Strengthen credit delivery system and to facilitate the flow of credit to the Micro and Small Enterprise sector without the hassles of collateral and third party guarantee up to a maximum of Rs. 5 crore through Credit Guarantee Scheme for Micro and Small Enterprises;
• • Launch of Udyam Assist Platform on 11.01.2023 to bring Informal Micro Enterprises (IMEs) under the formal ambit of MSME for availing the benefits under Priority Sector Lending;
• • Inclusion of Retail and Wholesale traders as MSMEs for the purpose of availing Priority Sector Lending benefits, w.e.f. 02.07.2021;
• • Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs;
• • Trade Receivable Discounting System (TReDS) to facilitate the financing of trade receivables of MSMEs from corporate and other buyers including government departments and public-sector undertakings (PSUs) through multiple financiers electronically:
• •  Rs. 50,000 crore equity infusion through Self Reliant India (SRI) Fund;
• • Rs. 5 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS), for businesses, including MSMEs was announced during the COVID-19 pandemic to fulfil the credit gap in MSMEs. The scheme was operational till 31.03.2023.

The key figures on the performance of Prime Minister's Employment Generation Programme(PMEGP) and Credit Guarantee Scheme for Micro and Small Enterprises during the last five years andthecurrentyear aregivenbelow:

• Prime Minister's Employment Generation Programme:

F.Y.	Units assisted	Estimated Employment Generated
2018-19	73,427	5,87,416
2019-20	66,653	5,33,224
2020-21	74,415	5,95,320
2021-22	1,03,219	8,25,752
2022-23	85,167	6,81,336
2023-24 till 30.01.2024	65,324	5,22,592

• Credit Guarantee Scheme for Micro and Small Enterprises:

F.Y.	Number of Guarantees approved	Amt. (₹ Crore)
2018-19	4,35,520	30,169
2019-20	8,46,650	45,851
2020-21	8,35,592	36,899
2021-22	7,17,020	56,172
2022-23	11,65,786	1,04,781
2023-24 till 31.12.2023	11,02,548	1,35,668

Employment opportunities in MSMEs

 Ministry of MSME, through Khadi and Village Industries Commission (KVIC), is implementing Prime Minister’s Employment Generation Programme (PMEGP) for assisting entrepreneurs in setting up of new units in the non-farm sector. It aims to bring widely dispersed traditional artisans/ rural and urban unemployed youth and give them self-employment opportunities to the extent possible, at their doorstep.

Under PMEGP, General Category beneficiaries can avail of Margin Money (MM) subsidy of 25% of the project cost in rural areas and 15% in urban areas. For beneficiaries belonging to Special Categories such as Scheduled Castes, Scheduled Tribes, OBCs, Minorities, Women, Ex-servicemen, Physically Handicapped, Transgenders, beneficiaries belonging to Northeastern Region, Hill and Border areas, and Aspirational Districts, etc., the Margin Money subsidy is 35% in rural areas and 25% in urban areas. The maximum cost of project is Rs. 50 lakhs in the Manufacturing sector and Rs. 20 lakhs in the Service sector.

Also, own contribution of beneficiaries under Special Category is 05% and 10% for General Category beneficiaries.

Since 2018-19, existing PMEGP/REGP/MUDRA enterprises are also supported based on past good performances with 2nd loan for upgradation and expansion. Under 2nd Loan, maximum project cost admissible for Margin Money subsidy under Manufacturing sector is Rs. 1.00 crore and for Service sector, it is Rs. 25 Lakh. Eligible subsidy on 2nd loan for all categories is 15% of project cost (20% for NER & Hill States).

Number of units assisted, Margin Money subsidy disbursed and estimated employment generated under PMEGP in the country from FY 2019-20 to FY 2021-22, year-wise is as follows:

Sl. No.	Year	Number of Units assisted	Margin Money Subsidy disbursed (Rs. In lakh)	Estimated employment generated
1	2019-20	66,653	195082.15	533,224
2	2020-21	74,415	218880.15	595,320
3	2021-22	103,219	297765.91	825,752
Total		244,287	711728.21	1,954,296

There is no downfall in employment generated during FY 2021-22 as compared to the FY 2020-21 under PMEGP. In fact, there has been an increase of ~39% in employment generated under PMEGP from 595,320 in FY 2020-21 to 825,752 in FY 2021-22.

Following steps are being taken by KVIC to generate more employment opportunities in the country:

1. Awareness camps, workshops and exhibitions at all levels are being organized in order to propagate the KVI schemes for generation of employment opportunities.
2. Publicity of KVI Schemes through print and electronic media.
3. To supplement the income of farmers, adivasis and unemployed youth of the country, KVIC launched Honey Mission during 2017-18. Under Honey Mission, every person is provided 10 bee boxes with live bee hives.
4. Under Kumbhar SashaktikaranProgramme, KVIC is uplifting rural pottery artisan’s livelihood by providing skill upgradation training and providing new home scale energy efficient equipment like electric pottery wheels, blunger, pug mill, kiln etc. for producing good quality of products.
5. KVIC, through www.ekhadiindia.com, www.khadiindia.goin has started online selling of all KVI products.

Women Entrepreneurs in MSMEs

 As per the Udyam Registration Portal (URP) of the Ministry of MSME, women-owned MSMEs constitute 20.5% of the total number of MSMEs registered on the Portal since its inception in 1st July 2020.  These women-owned MSMEs’ contribution to the employment generated by the total Udyam registered units is 18.73%, involving 11.15% of the total investment. The contribution of the women-owned MSMEs to the total turnover of Udyam registered MSMEs is 10.22%.  As per the data on Udyam Assist Platform (UAP) which registers Informal Micro Enterprises (IMEs), the contribution of women-owned IMEs to the total number IMEs (since inception of Udyam Assist portal on 11.01.2023) is 70.49%, and their contribution to employment is 70.84%.

The details of the total number of women-owned MSMEs and their contribution to employment, investment and turnover as available on the URP and UAP is provided in Annexure–I. State-wise details of the same are provided in Annexure-II.

The Ministry of MSME has taken a number of steps to support women-owned MSMEs :

1. Special drives for registration of women owned MSMEs under Udyam Registration Portal.
2. To benefit women entrepreneurs, the Public Procurement Policy was amended in 2018 mandating Central Ministries/Departments/ Undertakings to procure at least 3% of their annual procurement from women-owned micro and small enterprises.
3. To support women entrepreneurs under Credit Guarantee Scheme for Micro & Small Enterprises, two provisions have been introduced for women entrepreneurs w.e.f. 01.12.2022. These are:

1. 10% concession in annual Guarantee fees; and
2. 10 % additional Guarantee coverage of up to 85%, as against the 75% for other entrepreneurs.

4. To encourage entrepreneurship among women, Ministry of MSME implements ‘Skill Upgradation & Mahila Coir Yojana’ under Coir Vikas Yojana, which is an exclusive training program aimed at skill development of women artisans engaged in the Coir sector.
5. The Ministry also implements Prime Minister’s Employment Generation Programme (PMEGP), which is a major credit-linked subsidy programme aimed at generating self-employment opportunities through establishment of micro enterprises in the non-farm sector. For beneficiaries belonging to special categories such as Scheduled Caste/Scheduled Tribe/OBC /minorities/women/ ex-serviceman/ physically handicapped/ NER/ Hill and Border areas, etc., higher subsidy is given. 
6. To encourage participation of women entrepreneurs in trade fairs under Procurement & Marketing Support Scheme, higher subsidy is provided for women owned MSMEs.
7. “SAMARTH” initiative was launched to support women-owned MSMEs with the objective of providing Skill Development and Market Development Assistance to women and to train more than 7,500 women candidates from rural and sub-urban areas. Aspiring and existing women entrepreneurs have been provisioned with 20% Seats in free Skill Development Programs organized under Skill Development Schemes of the Ministry; 20% of MSME Business Delegations for domestic & international exhibitions under the schemes for Marketing Assistance implemented by Ministry; and 20% discount on annual processing fee on National Small Industries Corporation’s Scheme.
8. MSME Sustainable Zero Defect Zero Effect (ZED) Certification Scheme is an initiative to provide a roadmap to global competitiveness for Indian MSMEs having economic and social impacts in terms of capacity building of MSMEs. The aim of the scheme is that the goods being manufactured by the MSME sector have zero recall from market at the same time has zero effect on environment. Under this scheme to support and empower women entrepreneurs, there is a provision of 100% subsidy on cost of ZED Certification for Women owned MSMEs.
9. Under incubation component of MSME Innovative Scheme, a special MSME Idea Hackathon 3.0 was organised for Women entrepreneurs wherein 18,888 ideas have been received.

The Ministry of MSME implements the following capacity building programmes for capacity building and skill enhancement for MSMEs, including women entrepreneurs in MSMEs such as:

• Entrepreneurship Skill Development Programme (ESDP): The objective of ESDP is to promote new enterprises, to build capacity of existing MSMEs and to inculcate entrepreneurial culture in the country. About 40% of the targeted beneficiaries of ESDPs are mandated to be from weaker sections of the Society (SC/ST/Women/Physical Handicapped). No participation fee will be charged from SC, ST, Physical Handicapped, Below Poverty Line (BPL) participants and Women.

• Mahila Coir Yojana(MCY) aims at empowerment of women artisans in the coir sector by providing a stipendiary two-month training programme. The women artisans are encouraged to avail assistance under Prime Minister’s Employment Generation Programme (PMEGP).                                                       

Annexure – I

Contribution of Women-owned MSMEs to total MSMEs registered on Udyam Registration portal since Inception of the portal(1st July 2020 to 31st Jan 2024)

Category	Total	Employment	Investment (Rs In Crore)	Turnover (Rs In Crore)
Women MSME	4,667,278	28,407,069	126845.12	1714992.98
MSMEs	22,819,417	151,668,034	1,137,237	16,784,358
%age of Women owned MSMEs	20.5 %	18.73%	11.15%	10.22%

Contribution of Women-owned Informal Micro Enterprises (IMEs) to total IMEs registered on Udyam Assist Platform since Inception of the portal (11.01.2023 to 31.01.2024)

Category	Total  (nos)	Employment (no.of persons)
Women IME	9,108,058	11,023,945
IMEs	12,920,177	15,561,967
%age	70.49%	70.84%

Annexure-II

State wise Total Women Owned MSMEs Registered & Classified and their Employment , Investment & Turnover Under Udyam Since Inception Till Date
Sl. No.	State Name	Total	Micro	Small	Medium	Employment	Investment (Rs In Crore)	Turnover (Rs In Crore)
1	ANDAMAN AND NICOBAR ISLANDS	2,947	2,918	26	3	9,480	101.2	662.67
2	ANDHRA PRADESH	217,359	213,987	3,228	144	1,803,672	7229.41	73435.96
3	ARUNACHAL PRADESH	3,625	3,567	54	4	28,718	271.78	1393.89
4	ASSAM	108,744	107,827	883	34	580,707	1986.66	21899.28
5	BIHAR	161,754	159,833	1,852	69	1,082,265	3671.12	47862.88
6	CHANDIGARH	6,565	6,423	130	12	49,671	208.07	3656.33
7	CHHATTISGARH	53,914	52,811	1,059	44	288,175	1470.62	24502.95
8	DELHI	97,603	94,241	3,157	205	646,799	3477.11	81793.89
9	GOA	11,273	11,114	149	10	50,776	407.3	3760.09
10	GUJARAT	252,551	246,403	5,871	277	1,217,957	8647.54	137919.81
11	HARYANA	129,601	126,400	3,063	138	705,746	4224.69	70724.48
12	HIMACHAL PRADESH	26,251	25,844	385	22	116,790	830.16	10634.43
13	JAMMU AND KASHMIR	80,077	79,638	427	12	409,397	1474.32	11366.56
14	JHARKHAND	82,439	81,759	657	23	679,533	1509.84	17832.42
15	KARNATAKA	288,510	283,507	4,756	247	2,174,825	9053.61	113609
16	KERALA	142,144	140,303	1,759	82	537,209	3289.73	41139.99
17	LADAKH	1,825	1,813	11	1	5,699	92.3	198.48
18	LAKSHADWEEP	112	112	-	-	440	1.76	9.89
19	MADHYA PRADESH	158,805	155,991	2,712	102	909,832	4172.37	58636.11
20	MAHARASHTRA	834,774	825,120	9,082	572	3,279,075	18338.39	251357.15
21	MANIPUR	26,250	26,174	69	7	174,618	727.54	3253.65
22	MEGHALAYA	6,473	6,391	72	10	26,971	249.28	2533.82
23	MIZORAM	10,726	10,663	59	4	53,291	496.55	1428.02
24	NAGALAND	8,024	7,992	29	3	46,698	215.08	813.23
25	ODISHA	106,656	105,041	1,556	59	852,236	3274.41	37897.04
26	PUDUCHERRY	10,199	10,009	173	17	66,493	402.28	4770.79
27	PUNJAB	179,533	177,253	2,191	89	677,559	3966.4	55357.98
28	RAJASTHAN	220,993	216,179	4,608	206	1,166,292	5788.93	111004.19
29	SIKKIM	3,068	3,041	25	2	13,059	115.56	565.27
30	TAMIL NADU	623,492	615,385	7,705	402	4,279,608	17206.32	191942.79
31	TELANGANA	231,685	228,450	3,056	179	2,130,624	8786.43	73600.24

32	THE DADRA AND NAGAR HAVELI AND DAMAN AND DIU	3,025	2,904	116	5	29,555	155.23	2792.66
33	TRIPURA	14,675	14,551	114	10	127,684	281.13	3405.02
34	UTTARAKHAND	41,904	41,191	691	22	204,777	1176.21	15212.89
35	UTTAR PRADESH	350,542	343,917	6,320	305	2,170,076	8853.72	153964.46
36	WEST BENGAL	169,160	165,798	3,217	145	1,810,762	4692.07	84054.67
Total:-		4,667,278	4,594,550	69,262	3,466	28,407,069	126845.12	1714992.98
Report Dated:- 31/01/2024 03:20 PM

State wise Women IMEs and employment data for the women IMEs as on 31.01.2024
S. No.	Name of the State	Women IMEs	Employment
1	ANDAMAN AND NICOBAR ISLANDS	422	496
2	ANDHRA PRADESH	473,932	622,389
3	ARUNACHAL PRADESH	3,993	4,726
4	ASSAM	50,548	57,489
5	BIHAR	870,347	943,812
6	CHANDIGARH	1,843	1,934
7	CHHATTISGARH	194,868	208,396
8	DELHI	56,334	81,766
9	GOA	6,229	7,784
10	GUJARAT	302,580	353,254
11	HARYANA	102,780	131,124
12	HIMACHAL PRADESH	3,649	4,240
13	JAMMU AND KASHMIR	4,090	4,828
14	JHARKHAND	291,164	322,437
15	KARNATAKA	496,682	541,306
16	KERALA	249,937	292,418
17	LADAKH	360	377
18	LAKSHADWEEP	25	139
19	MADHYA PRADESH	749,190	810,106
20	MAHARASHTRA	764,092	876,967
21	MANIPUR	19,036	26,135
22	MEGHALAYA	2,772	3,253
23	MIZORAM	6,060	7,149
24	NAGALAND	10,978	12,379
25	ODISHA	374,612	416,386
26	PUDUCHERRY	13,381	16,979
27	PUNJAB	88,287	124,546
28	RAJASTHAN	262,017	334,349
29	SIKKIM	997	1,135
30	TAMIL NADU	514,273	720,833
31	TELANGANA	341,427	452,568
32	THE DADRA AND NAGAR HAVELI AND DAMAN AND DIU	1,455	1,767
33	TRIPURA	115,096	130,198
34	UTTARAKHAND	42,132	50,825
35	UTTAR PRADESH	881,950	989,544
36	WEST BENGAL	1,810,520	2,469,911
Total:-		9,108,058	11,023,945