MSME

February 2025
For updated information, please visit www.ibef.org
Table of Contents

Executive Summary 3

Advantage India 4

MSME Overview 6

Recent policies and Major Schemes 11

Recent Developments 21

Key Industry Contacts 25

Appendix 26

2
Executive summary
No. of Registered
MSME No. of MSMEs
MSMEs on
No. of MSMEs Contribution to under Udyog
Udyam
FY23 India’s Export Aadhaar
Registration
Output FY24 Memorandum
Portal

6.38 crore ~45.73% 5.02 crore 4.77 crore*

Registered
Registered micro- Registered small
midsized
enterprises enterprises
enterprises

3,93,18,355* ~ 6,08,935* 55,488*

▪ MSMEs are being encouraged to market their products on the e-commerce site, especially
Registered MSMEs in India in FY23 (lakh units)
through Government e-Marketplace (GeM), owned and run by the government, wherefrom
Ministries and PSUs (public sector undertakings) source their procurement.
▪ The Government e-Market (GeM) portal in India has achieved a significant milestone,
surpassing Rs. 3 lakh crore (US$ 35.96 billion) in public procurement transactions as of
Rural November 2024, for this financial year facilitating online purchases for over 63,000
MSMEs,
Urban government organizations and supporting more than 1.63 lakh women-led micro and small
324.9,
MSMEs,
51%
309.0, enterprises (MSEs) and 25,000 startups since its launch in 2016.
49%
▪ As per data from the Ministry of Micro, Small & Medium Enterprises, as of March 2024, the
number of MSMEs registered on the Udyam portal, including the Udyam Assist Platform
(UAP), has reached 4,00,42,875, with continual growth observed.

Notes: *As of July 2024

Source: FICCI-EY Re-imagining India's M&E sector , Ministry of Micro Small and Medium Enterprises, GeM Portal

3
Advantage India

4
Advantage India

2. STATUTORY 4. GOVERNMENT SCHEMES

3. POLICY SUPPORT
BODIES ▪ Under Pradhan Mantri Mudra Yojana
▪ The Union Budget for FY26 has raised the
investment limits for MSMEs by 2.5 times and (PMMY), In FY25 (Until 21st February
▪ The MSME Ministry heads five statutory 2025), Rs. 4.14 lakh crore (US$ 47.6
bodies—KVIC, Coir Board, NSIC, NI- doubled the turnover thresholds. Specifically, the new
limits are as follows: billion) was sanctioned under 4.2 crore
MSME, and the MGIRI. Mudra loans to non-corporate and
▪ These bodies are responsible for aiding ▪ For micro-enterprises, the investment limit is now Rs.
2.5 crore (US$ 0.3 million), with a turnover limit of Rs. non-farm MSEs.
MSMEs with respect to government ▪ The "Vivad se Vishwas I-Relief to
schemes and policies. 10 crore (US$ 1.2 million).
▪ For small enterprises, the investment limit has been MSMEs" scheme was launched in May
set at Rs. 25 crore (US$ 2.9 million), and the turnover 2023 by the Department of
limit is Rs. 100 crore (US$ 11.5 million). Expenditure, Ministry of Finance, to
1. SECTOR OVERVIEW ▪ For medium enterprises, the investment limit is now provide relief to MSMEs during the
COVID-19 period.
• As of Dec 2024, 5.70 crore MSMEs, Rs. 125 crore (US$ 14.4 million), while the turnover
limit stands at Rs. 500 crore (US$ 57.6 million). ▪ The "Raising and Accelerating MSME
with an employment of 24.14 crore
Performance" (RAMP) scheme,
are registered on Udyam Registration
launched in 2022, has benefitted 4
Portal and Udyam Assist Platform
lakh micro, small, and medium
(UAP).
enterprises, with women-owned
• The Union Ministry of Micro, Small,
businesses making up over 38% of the
and Medium Enterprises has
registered MSMEs, highlighting the
received an allocation of Rs. 23,168
government's focus on empowering
crore in FY26 Union Budget,
female entrepreneurs.
reflecting a 4.6% increase compared
to the FY25 Budget.

2 3

1 4
ADVANTAGE INDIA
Source: MSME Annual Report (2023-2024), News Sources

5
 MSME overview

MARKET OVERVIEW

6
Number of MSMES expected to grow; micro enterprise
dominates the sector

Registered MSMEs in India in FY24 (As of March 21, 2024)

Small enterprise, Medium

1.5% enterprise, 0.8%
Micro-enterprise
Small enterprise
Medium enterprise
Micro-enterprise,
97.7%

▪ India has approximately 6.3 crore MSMEs. The number of registered MSMEs stood at 4 crore units as of March 2024.
▪ As of December 2023, Maharashtra, Tamil Nadu, and Uttar Pradesh collectively account for nearly 40% of all registered micro, small, and medium
enterprises (MSMEs) in India, according to findings from a CBRE-CREDAI report. These states, in particular, have emerged as the top three
contributors to MSME registrations, with Maharashtra representing 17%, Tamil Nadu 10%, and Uttar Pradesh 9% respectively.
▪ Majority (72%) of the registered MSMEs, as of December 31, 2022, were service enterprises while manufacturing covered 28%.
▪ The U Gro report predicts that the contribution of Micro, Small, and Medium Enterprises (MSMEs) to India's GDP will rise from 30% to 40% by FY27,
driven by increased formalization through the UDYAM portal, greater access to credit, and government support, playing a vital role in India's goal of
becoming a developed nation ("Viksit Bharat") by 2047.

Source: News Sources

7
Criteria for MSME (micro small medium enterprise)

Micro Enterprise
• Enterprises with turnover of Rs. 5 crore
(US$ 610,000) or less are categorised as
micro enterprises.
Medium Enterprise • A manufacturing enterprise is categorised
as a micro enterprise when the investment
• Enterprises with less than Rs. 250 in plant and machinery does not exceed
crore (US$ 30.4 million) turnover Rs. 1 crore (US$ 120,000).
are categorised as medium
enterprises.
• A manufacturing enterprise is
categorised as a medium enterprise
when the investment in plant and
machinery does not exceed Rs. 50
crore (US$ 6.1 million).

Small Enterprise
• Enterprises with turnover of Rs. 50
crore (US$ 6.1 million) or less are
categorised as small enterprises.
• A manufacturing enterprise is
categorised as a small enterprise when
the investment in plant and machinery
does not exceed Rs. 10 crore (US$ 1.2
million).

Source: Development Commissioner Ministry of Micro Small and Medium Enterprises (DCMSME) Website, News sources

8
Statutory bodies under MSME ministry

Khadi and Village Industries Commission (KVIC)

1 Khadi and Village Industries Commission (KVIC) is a statutory organisation engaged in promoting
and developing khadi and village industries for providing employment opportunities in rural areas,
thereby strengthening the rural economy.

Coir Board
2 The Coir Board is a statutory body established for promoting overall development of the coir
industry and improving living conditions of workers in this industry.

National Small Industries Corporation Limited (NSIC)

3 Established in 1955, the National Small Industries Corporation Limited (NSIC) is responsible for
promoting, aiding and fostering growth of micro and small enterprises in the country, generally
on commercial basis.

National Institute for Micro, Small and Medium Enterprises, (NI-MSME)

4 Established in 1960, the National Institute for Micro, Small and Medium Enterprises (NI-MSME) is
responsible for enterprise promotion and entrepreneurship development, enabling enterprise
creation, performing diagnostic development studies for policy formulation, etc.

Mahatma Gandhi Institute for Rural Industrialisation (MGIRI)

The objectives of the Mahatma Gandhi Institute for Rural Industrialisation (MGIRI) are to accelerate
5 rural industrialisation for sustainable village economy, empower traditional artisans, encourage
innovation through pilot study and R&D for alternative technology using local resources.

Source: MSME website

9
Organisation setup of MSME ministry

Minister of MSME

Minister of State (MSME)

Secretary (MSME)

AS&FA AS&DC (MSME) JS (ARI) JS (SME)

ARI Division SME Division

EA (IFW) (KVIC, Coir (NSIC, NIMSME)
O/o DC (MSME) Board, MGIRI)
JS (TC)
& MSME-DIs

Integrated DDG (DATC)

Finance Wing
Tool Room
Division
DATC Wing
(DBT, Digital
Payment, IT
Cell)

Source: Development Commissioner Ministry of Micro Small and Medium Enterprises (DCMSME) Website

10
 Recent policies and major schemes

RECENT TRENDS AND STRATEGIES

11
Recent policy initiatives for MSME… (1/2)
1
UDYOG AADHAAR MEMORANDUM
▪ Udyog Aadhaar Memorandum (UAM) is a one-page online registration system for MSMEs based on self-certification.
▪ The information sought is on a self-certification basis and no supporting documents are required at the time of online filing of UAM.
▪ As per the Union Budget 2021-22, India has ~6.8 million Udyog Aadhar registered MSMEs.
▪ The Ministry of Micro, Small and Medium Enterprises extended the validity of Udyog Aadhaar Memorandum from December 31, 2021, to
June 30, 2022.

2
MSME DATABANK
▪ MSME DataBank enables the Ministry of MSME to streamline and monitor the schemes and pass on the benefits directly to
MSMEs.
▪ It is helpful for MSME units that can update their enterprise information as and when required without visiting any government office
and updating information about their products/services.

3
MY MSME
▪ In order to facilitate the enterprises to enjoy benefits of various schemes, the MSME office launched a web-based application
module in the form of a mobile app called My MSME.
▪ This allows enterprises to make their applications and check for schemes on their mobile phone using the app.

4
TECHNOLOGY CENTRE SYSTEMS PROGRAMME (TCSP)
▪ In March 2021, the Ministry of MSME, through the Development Commissioner (DC-MSME), implemented the Technology Centre
Systems Programme (TCSP) to establish 15 new technology centres (TC).
▪ The centres provide assistance to the industry, predominantly MSMEs in the General Engineering, Automotive, Fragrance & Flavour
and ESDM sectors

Source: MSME Annual Report (2018-2019), News Articles

12
Recent policy initiatives for MSME… (2/2)

6
DIRECT BENEFIT TRANSFER IN THE M/O MSME
▪ The welfare and subsidy schemes of the Government of India (GOI) have been brought under a single platform, i.e., the Direct
Benefit Transfer (DBT), to reform the delivery system, ensure faster flow of funds, target beneficiaries, avoid duplication and reduce
frauds.
▪ Direct Benefit Transfers (DBT) under the MSME ministry's schemes increased by 18.3% to Rs. 1,975.64 crore (US$ 236 million)
until December FY23, compared to Rs. 1,668.99 crore (US$ 199 million) in the same period of FY22. The highest transfer was
Rs.1,505.61 crore (US$ 180 million) under the Prime Minister's Employment Generation Programme (PMEGP).

7
DIGITAL PAYMENTS
▪ As part of the Digital India initiative, the Ministry of MSME has taken numerous initiatives to digitally enable the entire MSME
ecosystem—all MSME offices have been digitally empowered, and efforts have been taken to spread awareness on the benefits of
digital mode of payments such as BHIM, UPI and Bharat QR code.
▪ In January 2024, UPI processed over 16 billion transactions, totalling Rs. 23.48 lakh crore (US$ 270.3 billion), marking a 27% year-on-
year increase.

8
MSME-SAMBANDH
▪ The scheme has positively impacted target beneficiaries by providing professional support in upgrading their skills, facilitating
market linkages and handholding support which resulted in a 17-fold increase in public procurement from SC/ST MSEs (in
terms of value) i.e., Rs. 99 crore (US$ 11.4 million) in FY16 to Rs. 1,722 crore (US$ 198 million) in FY24 as reported on the
MSME Sambandh portal.
▪ The portal helps monitor procurement by CPSEs and enables them to share the list of required products or services from MSEs.

Source: MSME Annual Report (2018-2019), RBI, News Articles

13
Major schemes…(1/7)
The Ministry of MSME runs numerous schemes targeted at providing credit and financial assistances, skill development training, infrastructure
development, technological and quality upgradation and other services for MSMEs across the country.

Credit and Financial (1/3)

1Credit Guarantee Trust
Prime
Fund For Minister’s
MSEs Employment Generation Programme
(CGTMSE)
▪
Prime
The - Provision
Minister’s
scheme, of
implemented by the KVIC, aims to generate employment opportunities in rural and urban areas by setting up new self-
collateral free credit
employment
Employment ventures/projects/micro
Generation enterprises. The programme also aims to provide continuous sustainable employment to prospective
artisans
forProgramme
MSMEs and unemployed youth and increase the wage-earning capacity of artisans and contribute to the growth of rural and urban
employment
▪ The eligibility criteria to avail this scheme are the individual should be 18 years and above and if a project size is above Rs. 10 lakh (~US$
12,000) for manufacturing and Rs. 5 lakh (~US$ 6,000) for service, the applicant must have completed education up to 8th standard
▪ In the first 100 days of Prime Minister Mr. Narendra Modi's third term, over Rs.3,148 crore (US$ 377 million) in loans have been disbursed
under the Prime Minister Employment Generation Programme (PMEGP). This initiative has led to the establishment of more than 26,000
micro enterprises and the creation of approximately 210,000 jobs.
Credit Linked Capital
▪ Jammu and Kashmir leads in employment generation under the Prime Minister’s Employment Generation Programme (PMEGP), with
Subsidy Scheme
44,542 projects assisted between 2021-22 and 2023-24, receiving a margin money subsidy of Rs.921.38 crore (US$ 110 million).

2
Credit Linked Capital Subsidy Scheme
▪ As large number of MSEs in India are running their business with outdated technology and machinery, the objective of the Credit Linked
Credit Linked Capital
Capital Subsidy Scheme (CLCSS) is to facilitate technology upgrade among MSEs by providing capital subsidy of 15% (limited to a
Subsidy Scheme
maximum Rs. 15 lakh (~US$ 18,000)).
▪ The guarantees under this fund is provided to extend collateral free lending to MSEs through banks and other institutions.
▪ The scheme covers collateral free credit facility up to Rs. 2 crore (~US$ 240,000) per borrowing unit. The guaranteed cover is up to 75% of
the credit facility—Rs. 50 lakh (~US$ 60,000) (85% for loans up to Rs. 5 lakh (~US$ 6,000) provided to micro enterprises, 80% for MSEs
owned with a uniform guarantee at 75% of the credit exposure above Rs. 50 lakh (~US$ 60,000) and up to Rs. 2 crore (~US$ 240,000)). A
composite all in Annual Guarantee Fee up to 1.80% p.a. of the credit facility sanctioned is charged, with the minimum Guarantee Fee being
1% p.a.

Source: MSME Annual Report (2019-2020)

14
Major schemes…(2/7)
Credit and Financial (2/3)

3
Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE)
▪ The scheme was launched by the Government of India (GoI) to provide collateral-free credit to the micro and small enterprise sector.
▪ During the period from January to December 2024, a total of 1.99 million guarantees have been approved, amounting to Rs. 2.4 lakh
crore (US$ 27.6 billion).
▪ Since the launch of the Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE), till November 30, 2023, guarantees
amounting to Rs. 5,33,587 crore (US$ 64.35 billion) have been issued under the Credit Guarantee Scheme for Micro and Small
Enterprises (CGMSE).
▪ Union Minister for MSME Mr. Narayan Rane launched the revamped CGTMSE Scheme in Mumbai on April 27, 2023. CGTMSE has
been provided with an additional corpus support of Rs. 9,000 crore (US$ 1.09 billion) in the Union Budget for FY24 to revamp its Scheme
to provide a guarantee for an additional Rs. 2 lakh crore (US$ 24 billion) to Micro and Small Enterprises. The modifications included a
reduction in the guarantee fees for loans up to Rs. 1 crore (US$ 120,000) by 50% bringing the minimum guarantee fee to the level of
0.37% per annum only. Another major change announced was raising of ceiling for guarantee from Rs. 2 crore (US$ 240,000) to Rs. 5
crore (US$ 610,000) and enhancing the threshold limit for claim settlement without initiation of legal action to Rs. 10 lakh (US$ 12,000).
▪ The Ministry of MSME has increased the CGTMSE credit guarantee coverage for women-owned micro and small enterprises to 90%,
benefiting approximately 27 lakh women-led MSEs and supporting the government's goal of providing Rs. 5 lakh crore (US$ 59.94 billion)
in credit guarantees over the next two years.
▪ As of February 04, 2024, during the current Financial Year 2023-24, the Credit Guarantee Fund Trust for Micro & Small Enterprises
(CGTMSE) has achieved a noteworthy milestone by surpassing a guaranteed amount of Rs. 1.50 lakh crore (US$ 18.09 billion). This
marks a substantial increase of 50% from the previous fiscal year's figure of Rs. 1.04 lakh crore (US$ 12.54 billion).
▪ The guarantee cover available under the scheme is to the extent of 50%, 75%, 80% & 85% of the sanctioned amount of the credit facility.
The extent of guarantee cover is 85% for micro-enterprises for credit up to Rs. 5 lakh (US$ 6,000). The extent of guarantee cover is 50%
of the sanctioned amount of the credit facility for credit from Rs. 10-100 lakh (US$ 12,000-120,000) per MSE borrower for retail trade
activity.
▪ The extent of guarantee cover is 80% for (i) Micro and Small Enterprises operated and/or owned by women; and (ii) all credits/loans in
the North East Region (NER) for credit facilities up to Rs. 50 lakh (US$ 60,000). In case of default, trust settles the claim up to 75% of the
amount in default of the credit facility extended by the lending institution for credit facilities up to Rs. 200 lakh (US$ 240,000).

Source: MSME Annual Report (2019-2020), Start-up India

15
Major schemes…(3/7)
Credit and Financial (3/3)
4
Non-government provident funds (PFs) investing in alternative investment funds
(AIFs) will add to MSME fundraising options
▪ In March 2021, the Finance Ministry allowed private retirement funds to invest up to 5% in Category I & II AIFs regulated by SEBI; this will
help widen the fundraising options for MSMEs and expand the domestic pool of capital
▪ Category 1 AIFs consists of infrastructure, venture capital, angel and social venture funds. Category II AIFs covers funds where at least
51% of the size can be invested in either infrastructure, SMEs, venture capital or social welfare entities

5
Special Credit Linked Capital Subsidy Scheme (SCLCSS) for the services sector
▪ In November 2021, the Indian government launched the Special Credit Linked Capital Subsidy Scheme (SCLCSS) for the services sector.
▪ This scheme will help enterprises in the services sector meet various technology requirements. It also has a provision to grant 25% capital
subsidy for procurement of plant & machinery and service equipment's through institutional credit to MSMEs owned by SC-ST
entrepreneurs without any sector specific restrictions on technology upgradation.

6
Raising and Accelerating MSME Performance (RAMP)
• As of December 2024, 32 states and union territories have submitted Strategic Investment Plans (SIPs), with 31 of these plans evaluated.
Over 200 proposals, amounting to approximately Rs. 3,000 crore (US$ 345.3 million), have been approved for the states and union territories.
Since its inception, all initiatives under RAMP have positively impacted more than 4,00,000 MSMEs.
• The central government approves Rs. 114.80 crore (US$ 13.67 million) for Rajasthan under the Raising and Accelerating MSME
Performance (RAMP) programme, aimed at boosting MSME enterprises in the state and enhancing their capacity to contribute to country
goals.

Source: Press Information Bureau

16
Major schemes…(4/7)

7
Credit Guarantee Scheme for the livestock sector
• The Department of Animal Husbandry & Dairying (DAHD) under the Ministry of Fisheries, Animal Husbandry and Dairying announced the
launch of a new credit guarantee scheme. The scheme under the Animal Husbandry Infrastructure Development Fund (AHIDF) aims to
Creditfacilitate
Guarantee Trust
collateral-free credit for MSMEs in the livestock sector.
Fund For MSEs
• To operationalize the scheme, DAHD said it has set up a credit guarantee fund trust of Rs. 750 crore (US$ 90.2 million) for credit
(CGTMSE)
guarantee
Prime - Provision
coverage of up to 25 % of loans disbursed to MSMEs by eligible banks and other lending institutions.
Minister’s
collateral free credit
Employment Generation
Skill Development and Training
forProgramme
MSMEs

1
A Scheme for Promotion of Innovation, Rural Industry & Entrepreneurship
(ASPIRE)
▪ The objectives of this scheme are to create new jobs, promote entrepreneurship culture in the country, promote innovation in the
MSME sector, etc.
▪ The scheme activities include livelihood business incubators and technology business incubators.

2
Entrepreneurship
Credit Linked Capital and Skill Development Programmes (ESDP)
▪
Subsidy Scheme
Under the Entrepreneurship and Skill Development Programmes (ESDP), the Ministry of MSME has been organising several
programmes focussing on the process of improving skills and knowledge of entrepreneur, and enhancing the capacity to develop,
manage and organise a business venture.
▪ The objective of the program is to motivate young individuals to consider self-employment or entrepreneurship as one of the career
options.
▪ Total 2,792 programmes have been conducted, benefiting 1,40,738 persons, under the scheme, ESDP from January to December 2024..

Source: MSME Annual Report (2019-2020)

17
Major schemes…(5/7)

Infrastructure
1
Scheme of Fund for Regeneration of Traditional Industries (SFURTI)
▪ The objectives of this scheme are to organise traditional industries and artisans into clusters to make them competitive and provide
support for their long-term sustainability, enhance marketability of products of such clusters, build innovative products, improve
technologies, etc.
▪ Chief Secretary Dr. K. S. Jawahar Reddy oversees the establishment of a banana processing cluster in Pulivendula, Kadapa district,
under the SFURTI scheme, with an estimated cost of Rs 121 crore (US$ 14.51 million), capable of processing 1.08 lakh metric tonnes of
bananas annually.
▪ From January to December 2024, 18 clusters have become operational, benefiting a total of 11,810 artisans across 11 states.
Additionally, 15 clusters were approved in FY23, with a total assistance of Rs. 40.0 crore (US$ 4.6 million) from the Government of India,
directly benefiting 8,875 artisans.

2
Scheme for Micro & Small Enterprises Cluster Development Programme (MSE-
CDP)
Credit Linked Capital
▪ The MSME Ministry has adopted the cluster development approach as a key strategy for enhancing productivity and competitiveness as
Subsidy
well Scheme
as capacity building of Micro and Small Enterprises (MSEs) in the country.
▪ The programme includes activities such as support funding for setting up ‘Common Facility Centres (CFC) and Infrastructure
Development Projects (IDP)’. 30 projects for setting up of Common Facility Centre (CFC) under MSE-CDP have been approved in
Maharashtra, out of which, 14 projects are completed.
▪ Since the scheme's inception, a total of 580 projects have received approval, with 308 projects completed. Among these approved
projects, 40 were sanctioned from January 2023 to December 2023, with a total project cost of nearly Rs. 560 crore (US$ 67.53 million),
aided by the Government of India with Rs. 386 crore (US$ 46.55 million).

Source: MSME Annual Report (2019-2020)

18
Major schemes…(6/7)

Technology Upgrade and Competitiveness

1
Technical Institutions
▪ From January to November 2024, tool rooms and technical institutions have supported 44,223 units.

▪ In alignment with the Atmanirbhar Bharat initiative, significant import substitution efforts have been implemented. As a result, several
tool rooms have successfully developed and manufactured indigenous components tailored for Micro, Small, and Medium
Enterprises (MSMEs).

2
Support for Entrepreneurial and Managerial Development of SMEs through
Incubators
Credit Linked Capital
Subsidy
▪ Scheme
The objective of the scheme is to promote and support the creativity of MSME enterprises and encourage adoption of the latest
technologies in manufacturing as well as knowledge-based innovative MSMEs.
▪ The scheme includes financial assistance of up to Rs. 15 lakh (US$ 18,000) for developing and nurturing the idea; up to Rs. 1 crore
(US$ 120,000) for procurement and installation of plant and machines to strengthen technology-related R&D activities; or up to Rs. 1
crore (US$ 120,000) as a grant-in-aid for seed capital support to Host Institute (HIs)/Business Incubator (BIs) for converting deserving
ideas into start-ups.

Source: MSME Annual Report (2019-2020)

19
Major schemes…(7/7)

Other Services

1
Building Awareness on Intellectual Property Rights (IPR) for MSMEs
▪ The Building Awareness on Intellectual Property Rights (IPR) has been launched to promote awareness of Intellectual Property
Rights (IPINR) among MSMEs by assisting them in technology upgrade and enhancing competitiveness and effective utilisation of
IPR tools.

▪ Under the 'IPR' component, the Intellectual Property Facilitation Cell (IPFC) has approved a total of 73 patents, 616 trademarks, 37
designs, and 1 geographical indication (GI) registration as of September 2024.

2
Trade, import and export for MSMEs
▪ MSME support and development organisation, National Small Industries Corporation (NSIC), will assist MSMEs working with the
Credit Linked Capital
Agricultural and Processed Food Products Export Development Authority (APEDA) across multiple areas
Subsidy Scheme
▪ The NSIC, through an MoU with APEDA, will help its MSME members in exploring the export potential of their agricultural and
processed foods products. Additionally, APEDA members will get access to NSIC schemes, which would help them address issues
pertaining to technology adoption, skills, product quality and market access

▪ MSMEs exports have witnessed a remarkable rise, increasing from Rs. 3.95 lakh crore (US$ 45.5 billion) in CY21 to Rs. 12.39 lakh
crore in CY25, underscoring their critical role in boosting India’s economy and strengthening global trade. The total number of
exporting MSMEs in CY25 has also increased to 1,73,350 in CY25.
Source: MSME Annual Report, News

20
Recent Developments

21
New developments (1/2)
1
Institutional Support
▪ Aragen Life Sciences has announced a Rs. 2,000 crore (US$ 239 million) investment to expand its facility in Hyderabad, aiming to create 1,500 new
jobs and enhance its capabilities in drug discovery, development, and manufacturing for the global life sciences industry. This expansion underscores
Hyderabad's growing prominence as a hub for Contract Research Organizations (CROs) in India.
▪ At the TN Global Investors Meet in January, investments of Rs. 63,573 crore (US$ 7.62 billion) were committed, with Rs. 13,000 crore (US$ 1.56
billion) operationalized in the MSME sector. State Minister for MSME, Mr. T.M. Anbarasan announced that 1,277 MSME companies have invested
Rs.13,003 crore (US$ 1.56 billion) over the past five months, generating approximately 46,000 jobs. Additionally, 60% of the MoUs signed during the
meet are in advanced stages of implementation, with a high-level committee to oversee these investment commitments being formed.
▪ The Holani Group has successfully raised Rs. 184 crore (US$ 22 million) for its new SME-focused venture capital fund, which aims to reach a total of
Rs. 300 crore (US$ 35.96 million). This initiative follows the group's approval from SEBI for its Alternate Investment Fund earlier this year. The fund
includes a green shoe option to potentially raise an additional Rs.100 crore (US$ 12 million).
▪ PayU, the payments and fintech business of Prosus, has made a strategic investment of US$ 5 million in a seed round in BRISKPE, a Mumbai-based
cross-border payments platform focused on simplifying global payments for MSMEs.
▪ Google plans to make a calculated investment in digital payments with the aim to strengthen the dynamic Indian Micro, Small and Medium Enterprise
(MSME) market, said Mr. Sanjay Gupta, Country Head and Vice President of Google India. Google plans to expand its impact beyond payments,
aiming to unlock India's MSME potential through financial inclusion and digital empowerment.
▪ In a significant move to bolster the MSME sector in India, the Technology Development Board (TDB) and the Small Industries Development Bank of
India (SIDBI) formalized a Memorandum of Understanding (MoU) to facilitate easier access to credit for enterprises engaged in the development and
commercial application of indigenous or imported technology.
▪ As of February 05, 2024, women-owned MSMEs constitute 20.5% of Udyam Portal registrations, contributing 18.73% to employment and 10.22% to
turnover. Various initiatives support their growth and empowerment in the sector.
▪ On January 18, 2024, FinAGG Technologies, specializing in MSME financing, secured US$ 11 million funding co-led by BlueOrchard and Tata
Capital Ltd. The Series A round also involved SIDBI and Prime Venture Partners, aiming to expand presence, drive innovation, and empower women
entrepreneurs.
▪ On February 27, 2023, in New Delhi, a Memorandum of Understanding (MoU) was signed to renew cooperation in the MSME sector between the
National Small Industries Corporation Ltd. (NSIC), a CPSE under the Ministry of MSME, and the Korea SMEs and Startups Agency (KOSME) of the
Republic of Korea.

Source: News Articles

22
New developments (2/2)

2
Government Push
▪ In Union Budget FY26, the government mentioned to support for five lakh first-time women entrepreneurs from scheduled castes and
scheduled tribes, providing up to Rs. 2 crore (US$ 0.2 million) in term loans along with online training. This represents a significant
advancement toward gender inclusivity in business.
▪ The Telangana government has launched the "Telangana MSME Policy 2024," allocating Rs. 4,000 crore (US$ 479 million) over five years
to establish over 25,000 new MSMEs and enhance support for self-help groups, while focusing on key areas like finance access, raw
material availability, and green technology adoption.
▪ The Union Government will launch a new special credit guarantee scheme providing up to Rs. 100 crore (US$ 12 million) in collateral-free
loans for Micro, Small, and Medium Enterprises (MSMEs), as announced by Union Finance Minister Mrs. Nirmala Sitharaman, with a
particular focus on supporting Karnataka's 35 lakh MSMEs that contribute significantly to job creation.
▪ According to the Budget 2024 documents, Union Minister for Finance and Corporate Affairs, Mrs. Nirmala Sitharaman announced a crucial
increase in the MUDRA loan limit for MSMEs from Rs 10 lakh (US$ 11,988) to Rs. 20 lakh (US$ 23,977) for those who have successfully
repaid their previous loans.
▪ The central government approves Rs. 114.80 crore (US$ 13.67 million) for Rajasthan under the Raising and Accelerating MSME
Performance (RAMP) programme, aimed at boosting MSME enterprises in the state and enhancing their capacity to contribute to the goals
of Developed India-Developed Rajasthan.
▪ The Centre approves Strategic Investment Plans (SIPs) for nine states, including Rajasthan, West Bengal, and Gujarat, under the Raising
and Accelerating MSME Performance (RAMP) scheme, with a total funding of Rs. 713 crore (US$ 85.49 million), aiming to reduce
compliance costs and improve credit access for micro, small, and medium enterprises.
▪ The Self-Reliant India (SRI) fund, with a corpus of Rs. 50,000 crore (US$ 6 billion), has invested Rs. 7,593 crore (US$ 910 million) in 425
MSMEs, supporting sectors such as agriculture, pharma, auto, and chemicals, under the Aatmanirbhar Bharat package.
▪ The Defense Ministry will procure 928 strategically important Line replacement units, subsystems, spares, and components from Indian
MSMEs, as informed in May 2023.
▪ Through the Public Procurement Policy, the Central Government is promoting small-scale enterprises by purchasing the products of MSEs.
In the financial year 2022-23, the government spent Rs. 60,432 crore (US$ 7.3 billion), which is 42% more than the target.
▪ On March 15, 2024, the total number of registered enterprises on Udyam and UAP surpassed 4 crore, marking a significant achievement for
the formalization initiative led by the Ministry of MSME.

Source: News Articles

23
Key Industry Contacts

24
Key Industry Contacts

Agency Contact Information

B - 4 / 161, Safdarjung Enclave,

Ministry of Micro, Small and Medium New Delhi-110029,
Enterprises Telephone: +91-11-23063288/23063643
Website: https://msme.gov.in

Room No 356 A, Udyog Bhawan, Rafi Marg, New Delhi –

110011
Federation of Indian Micro and Small & Telephone: 91-11- 26187948,26712064,46023157,46018592
Medium Enterprises (FISME) Fax: +91-11- 26109470
Email: [email protected]
Website: http://www.fisme.org.in

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Appendix

26
Glossary
▪ CFC: Common Facility Centres

▪ CPGRAMS: Centralised Public Grievance Redress and Monitoring System

▪ CPSEs: Central Ministries/Departments/Public Sector Enterprises

▪ DBT: Direct Benefit Transfer

▪ GOI: Government of India

▪ KVIC: Khadi and Village Industries Commission

▪ MGIRI: Mahatma Gandhi Institute for Rural Industrialisation

▪ MSEs: Micro and Small Enterprises

▪ MSE-CDP: Micro & Small Enterprises Cluster Development Programme

▪ MSME: Micro Small and Medium Enterprise

▪ NSIC: National Small Industries Corporation Limited

▪ NI-MSME: National Institute for Micro, Small and Medium Enterprises

▪ SC/ST: Schedule Caste/ Schedule Tribe

▪ TCSP: Technology Centre Systems Programme

▪ UAM: Udyog Aadhaar Memorandum

▪ Y-o-Y: Year on Year

▪ Wherever applicable, numbers have been rounded off to the nearest whole number

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Exchange rates

Exchange Rates (Fiscal Year) Exchange Rates (Calendar Year)

Year Rs. Equivalent of one US$ Year Rs. Equivalent of one US$
2004-05 44.95 2006 45.33
2005-06 44.28 2007 41.29
2006-07 45.29
2008 43.42
2007-08 40.24
2009 48.35
2008-09 45.91
2010 45.74
2009-10 47.42
2011 46.67
2010-11 45.58
2012 53.49
2011-12 47.95
2012-13 54.45 2013 58.63
2013-14 60.50 2014 61.03
2014-15 61.15 2015 64.15
2015-16 65.46 2016 67.21
2016-17 67.09 2017 65.12
2017-18 64.45 2018 68.36
2018-19 69.89
2019 69.89
2019-20 70.49 2020 74.18
2020-21 73.20 2021 73.93
2021-22 74.42 2022 79.82
2022-23 78.60 2023 82.61
2023-24 82.80 2024 84.49
2024-25** 85.34 2025* 86.20

Note: *- Until January 2025, **- April 2024- January 2025

Source: Foreign Exchange Dealers’ Association of India

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