Industry Celebrates World MSME Day 2025

On the occasion of World MSME Day 2025, it is crucial to recognise, celebrate, and reimagine the role of India’s Micro, Small, and Medium Enterprises (MSMEs). These enterprises, often described as the silent drivers of India’s growth engine, collectively contribute nearly 30% to the nation’s GDP and employ over 110 million people. They sustain local economies, drive innovation, create livelihoods, and form a powerful pillar of India’s socio-economic framework.

Yet, despite their undeniable importance, MSMEs continue to grapple with systemic barriers—access to affordable finance, health and wellness of their workforce, market linkages, and technology adoption. On this World MSME Day, leading voices from India’s entrepreneurial ecosystem share their perspectives on how to bridge these gaps and unlock the sector’s true potential.

MSMEs: The Drivers of Inclusive Prosperity

Neha Juneja, CEO and Co-Founder of IndiaP2P, aptly captures the gravity of the sector’s contribution:

“MSMEs form the backbone of India’s economy, contributing nearly 30% to GDP and employing over 110 million people. They drive innovation, enable livelihoods, and sustain local economies across urban and rural India. Yet, access to timely and affordable credit remains a key barrier to their growth. On MSME Day, we recognise their outsized role and the urgent need to support them with policies, capital, and opportunities. A thriving MSME sector is not just good economics—it’s essential for inclusive, resilient, and sustained national prosperity.”

Her remarks spotlight the paradox: MSMEs are celebrated as growth engines, yet face crippling hurdles to secure timely and affordable finance. According to data from the Reserve Bank of India, the credit gap in the MSME sector is estimated at over USD 300 billion. This financial bottleneck severely restricts their ability to expand, upgrade technology, and scale operations.

To bridge this divide, innovative models such as peer-to-peer lending, digital lending platforms, and tailored government-backed credit schemes are gaining traction. Financial literacy campaigns, simplified documentation norms, and faster loan disbursals will further improve MSMEs’ access to growth capital. The question is no longer if these enterprises deserve support, but how to deliver it more effectively.

Empowering MSME Workers: Health as a Strategic Imperative

While capital access is a crucial lever, another powerful pillar of MSME success is the health and well-being of its workforce. MSMEs employ a vast pool of India’s working-age population, ranging from skilled artisans to industrial workers and service providers. Their health and productivity have a direct bearing on enterprise performance.

Sudipta Sengupta, Founder and CEO of The Healthy Indian Project, strongly advocates for a worker-first approach:

“Indian MSMEs have been instrumental in driving the nation’s economy and supporting the Prime Minister's 'Make in India' vision. However, to truly empower this sector, we must prioritize the health and well-being of the employees who are the backbone of these businesses. Providing mandatory health insurance, access to healthcare services, and wellness programs can significantly improve the quality of life for workers. By partnering with healthcare companies and insurtech providers, MSMEs can create a healthier, more productive workforce. On MSME Day, let’s focus on building a future where health and prosperity go hand in hand.”

This vision resonates with current trends. Many MSMEs still treat employee health as a discretionary expense rather than a strategic investment. But studies have shown that healthier workers translate into fewer sick days, higher morale, better retention, and stronger productivity.

New-age partnerships between MSMEs, insurtech startups, and public healthcare missions can build cost-effective, scalable models for universal employee health coverage. MSME-focused health insurance plans, preventive check-ups, mental wellness programs, and easy-to-access telemedicine services are some of the tools that can create a more resilient MSME workforce.

Building Connections: The Social Capital of MSMEs

Beyond financial and health challenges, another powerful enabler for MSMEs is their ability to connect with wider ecosystems—communities, innovators, policymakers, and customers.

Ankit Mathur, Co-founder and CEO of Greenway Grameen, underlines the power of networks and social capital in MSME growth:

“MSMEs don’t thrive alone. They need access to people, ideas, capital, and the one chance that moves them forward. They form the foundation of India’s economic and social fabric. Drive innovation, create vital jobs, and enable sustainable growth from the ground up. Their challenges are real, but so is their potential to transform lives through resilience and creativity. Building strong links between entrepreneurs, communities unlocks MSMEs’ true potential. These connections provide crucial access to resources, markets that fuel innovation and strengthen resilience.”

Mathur’s observations highlight a critical piece of the MSME puzzle. Smaller businesses, by their very nature, rely on local communities for skilled labour, supplier relationships, and market demand. Building trust-based networks with these stakeholders not only boosts growth but also provides resilience against disruptions like pandemics or global market shocks.

Formal business networks, chambers of commerce, local cooperative societies, and government-supported innovation clusters can all play a crucial role in connecting MSMEs to the resources they need. These community links also foster knowledge-sharing and collaborative growth, which are essential to keep small businesses competitive in a rapidly evolving economic landscape.

MSMEs and Technology: Catalysts of Change

While the above challenges are deeply rooted, the opportunity to leapfrog them is real — thanks to technology. Digital payments, e-commerce platforms, cloud-based business tools, and even artificial intelligence are now within the reach of MSMEs. However, widespread adoption is still limited due to lack of awareness, skills, and confidence.

Capacity-building initiatives, such as digital skilling workshops, onboarding support for e-commerce, and easy access to affordable technology products, can help MSMEs make this digital leap. Governments, industry bodies, and large corporations should continue to collaborate to ensure that no MSME is left behind in India’s digital revolution.

Towards a Thriving MSME Ecosystem

The collective wisdom of leaders like Neha Juneja, Sudipta Sengupta, and Ankit Mathur shows that supporting MSMEs requires a multi-dimensional, coordinated approach. Affordable and accessible capital, healthier and happier employees, stronger community linkages, and faster digital adoption must all be advanced together.

MSMEs represent India’s aspirations at their purest. From a small handicraft unit in rural Rajasthan to a cutting-edge green-tech startup in Bengaluru, MSMEs embody the spirit of enterprise, innovation, and resilience that defines a Viksit Bharat (Developed India) by 2047.

On World MSME Day 2025, let us go beyond celebration. Let us renew our commitment to making MSMEs stronger, healthier, and future-ready. Whether as policymakers, financial institutions, entrepreneurs, or citizens, our collective support can transform these businesses into even more powerful drivers of India’s growth.

Together, we can build an MSME ecosystem where opportunity, health, and innovation thrive hand in hand. And in doing so, we will build a more prosperous, inclusive, and resilient India.