MSME Ministry Accelerates Sector Growth with Major Policy Push, 28.73 Crore Jobs Reported

The Ministry of Micro, Small & Medium Enterprises (MSME) has unveiled a comprehensive update on its initiatives for the promotion and development of India’s MSME sector, highlighting a remarkable 28.73 crore employment count registered on the Udyam Registration Portal and Udyam Assist Platform between July 1, 2020, and July 31, 2025.

This surge in employment reflects the government’s multi-pronged approach to supporting entrepreneurship, boosting credit flow, upgrading technology, and formalizing the vast informal MSME base.

Udyam Registration and Formalization of MSMEs

Launched on July 1, 2020, the Udyam Registration Portal introduced revised classification criteria for MSMEs to enhance Ease of Doing Business. The government also launched the Udyam Assist Platform (UAP) to integrate Informal Micro Enterprises (IMEs) into the formal financial ecosystem, enabling them to access Priority Sector Lending (PSL) benefits.

In a significant policy shift, retail and wholesale traders were included in the MSME definition from July 2, 2021, giving them access to various schemes and financial support.

Major Credit & Funding Boosts

The MSME Ministry has strengthened its credit support ecosystem with landmark initiatives:

• Credit Guarantee Scheme Revamp: An infusion of ₹9,000 crore is set to facilitate ₹2 lakh crore additional credit for Micro and Small Enterprises (MSEs), expanding employment opportunities.

• Collateral-Free Loans: Effective April 1, 2025, MSEs can now avail collateral-free loans up to ₹10 crore with up to 90% guarantee coverage under the CGTMSE Credit Guarantee Scheme.

• Self-Reliant India (SRI) Fund: A ₹50,000 crore equity funding corpus aims to help high-potential MSMEs scale into larger enterprises.

• TReDS Platform: The Trade Receivables Discounting System enables MSMEs to receive timely payments by electronically discounting trade receivables from corporates, PSUs, and government departments.

Skill Development & Employment Generation Schemes

The Ministry continues to strengthen skill and entrepreneurship capacity through programmes like:

• Prime Minister’s Employment Generation Programme (PMEGP): Project cost limits have been doubled — from ₹25 lakh to ₹50 lakh for manufacturing and ₹10 lakh to ₹20 lakh for services — widening the scheme’s reach.

• Entrepreneurship Skill Development Programme (ESDP) to nurture entrepreneurial talent.

• PM Vishwakarma Scheme (launched September 17, 2023) offering holistic benefits to artisans and craftspeople in 18 traditional trades.

Comprehensive MSME Support Ecosystem

The Ministry operates a wide range of schemes covering credit, skill development, technology, and market access:

• MSE-Cluster Development Programme (MSE-CDP)

• Procurement and Marketing Support Scheme (PMSS)

• Raising and Accelerating MSME Performance (RAMP)

• International Cooperation Scheme

• Tool Rooms & Technology Centres (TCSP)

• National SC/ST Hub (NSSH)

• MSME Champions initiative

These schemes are designed to address the sector’s challenges — from technology gaps to market linkages — ensuring a stronger role for MSMEs in India’s economic growth.

Minister’s Statement

Sharing the update in a written reply to the Rajya Sabha, Minister of State for MSMEs, Sushri Shobha Karandlaje, reaffirmed the government’s commitment:

“The MSME sector remains a cornerstone of India’s economic framework. Through a combination of credit support, formalization measures, and skill development programmes, we aim to make MSMEs globally competitive while creating sustainable livelihoods across the country.”

SMEStreet Insights

With 28.73 crore jobs generated in just five years and a significantly expanded credit and funding ecosystem, India’s MSME growth story is being reshaped for a new era. The formalization push through Udyam Registration and Udyam Assist, coupled with targeted schemes like PM Vishwakarma and the SRI Fund, points toward a future-ready MSME sector poised to play a defining role in achieving Viksit Bharat 2047.