Govt Targets 9 Crore MSMEs by 2029, Focuses on Formalizing Sector: Senior Official
The Indian government aims to formalize all Micro, Small, and Medium Enterprises (MSMEs) in the country by 2029, with an ambitious target to register 9 crore MSMEs under the Udyam and Udyam Assist (UA) portals. Currently, over 6 crore MSMEs have already registered, marking significant progress towards this goal, according to a senior government official.
At an Assocham event in New Delhi, Mercy Epao, Joint Secretary, Ministry of Micro, Small, and Medium Enterprises, highlighted that the MSME sector plays a crucial role in India’s economy, contributing more than 30% to the nation’s Gross Domestic Product (GDP), 36% of manufacturing output, and over 45% of exports. She also noted that the sector is the second-largest employer, providing more than 26 crore jobs and generating over ₹5 lakh crore in Goods and Services Tax (GST) contributions.
Epao emphasized the government’s focus on sustainable development, aiming to make MSMEs globally competitive and a key driver of economic growth. To this end, the government has rolled out a variety of schemes and programs to address challenges faced by MSMEs, with particular attention on uplifting women, SC/ST communities, and persons with disabilities through special campaigns and initiatives.
One of the highlights of her address was the strong growth in bank credit to MSMEs, which has outpaced credit dispersal to large enterprises. According to the Economic Survey 2024-25, credit to MSMEs grew by 13% year-on-year, compared to just 6.1% for large enterprises.
Epao also spoke about the government’s efforts to improve the credit ecosystem for MSMEs, noting the infusion of an additional ₹9,000 crore into the revamped Credit Guarantee Scheme for MSMEs. This is expected to enable the flow of an additional ₹2 lakh crore to the sector. As part of the scheme, the guarantee fee has been reduced to just 0.37% per annum, and the guarantee ceiling under the digital footprint model has been increased to ₹10 crore. Furthermore, the guarantee coverage for women-owned enterprises has been raised from 85% to 90%, compared to 75% for other MSMEs.
Additionally, the criteria for MSME eligibility have been revised, with investment limits increased to ₹2.5 crore and turnover up to ₹10 crore, to ensure broader coverage of benefits for enterprises across sectors.
With these initiatives, the government is determined to enhance the competitiveness of India’s MSME sector, making it a powerful engine of growth and ensuring greater financial inclusion for businesses, especially those led by women and marginalized communities.
