President Murmu hails MSME sector’s role
President Droupadi Murmu emphasized the importance of India’s MSME (Micro, Small, and Medium Enterprises) sector during her address at the International MSME Day event in New Delhi on June 27, 2025. She described MSMEs as the backbone of India’s economy, accounting for approximately 30% of GDP, 36% of manufacturing output, and 45% of exports. Highlighting their critical role in fostering grassroots innovation, Murmu also pointed out that MSMEs are the second-largest employment generator in India after agriculture, especially vital for rural and underdeveloped areas.
A globally significant ecosystem
Murmu placed MSMEs within the wider global context, noting that they comprise nearly 90% of businesses worldwide and create over half of global employment. Recognizing their global significance, the United Nations has marked June 27 as International MSME Day since 2017, aligning with the 2025 theme: “Enhancing the role of MSMEs as drivers of Sustainable Growth and Innovation.”
Harnessing economic inclusion and innovation
MSME enterprises are more than just economic entities, they’re engines of social progress. Murmu underscored how their penetration into rural India bridges regional disparities and fosters true inclusivity. By generating employment in backward areas and empowering women and marginalized communities, MSMEs drive both sustainability and inclusive growth. These themes were echoed in a recent analysis that underlined the sector’s strengths: generating millions of jobs, boosting exports, and facilitating grassroots technological adoption.
India’s digital transformation
India’s MSMEs are rapidly evolving, riding a strong digital wave. A recent survey reveals that about 73% of MSMEs in semi-urban and rural India saw growth, through improved incomes and efficiencies, due to digital adoption. Smartphones are the primary tools for business management, while UPI has emerged as the leading digital payment method. This digital integration not only sustains growth but fuels inclusion, bringing small businesses into the mainstream economy.
Increasing global competitiveness
India is striving to integrate MSMEs into global value chains. Analysts and policymakers have noted the sector’s contributions to exports, handling almost 45% of all shipments, and its potential to propel India towards becoming a USD 5 trillion economy. Government strategies like the Union Budget 2025 reforms are targeting bottlenecks like credit restraints, skill deficits, and technological gaps to enhance global competitiveness.
Policy interventions: Fuelling the MSME engine
India’s government has launched numerous initiatives to bolster MSMEs:
- Credit schemes: Through CGTMSE and other guarantee funds, collateral-free loans up to ₹5 crore are available, with favourable coverage ratios for micro, women-owned, and North Eastern enterprises. Recent budgetary expansions doubled credit guarantees and fast-tracked loan approvals.
- Budget support: Union Budget 2025 has raised credit provisions, introduced AI and tech skilling initiatives, and is focusing on women, SC/ST entrepreneurs, and first-time founders.
- Digital frameworks: Schemes like the Digital MSME Scheme, Udyam registration, and ONDC integration are helping small businesses adopt digital tools and gain market access.
- Green upgrades: The ZED Certification Scheme incentivizes eco-friendly practices, with subsidies particularly for women-led enterprises.
MSMEs & India’s Viksit Bharat vision
Subhransu Sekhar Acharya, CMD of NSIC, reinforced President Murmu’s message by drawing attention to the transformation of MSME India, from traditional artisans (charkha) to high-tech entities contributing to missions like Chandrayaan. He stressed that this growth trajectory underpins India’s Viksit Bharat vision, bolstered by digital entrepreneurship, skill enhancement, and alignment with flagship schemes.
Conclusion: MSMEs at the heart of India’s future
With over 6.5 crore formal MSMEs already, their collective impact on GDP, exports, employment, and innovation is monumental. President Murmu’s celebration of the sector highlights not just its present strength, but its future potential to elevate India economically and socially. The convergence of digital access, financial backing, green practices, and global outreach paints a compelling picture, one where MSMEs continue to shape an inclusive, sustainable, and prosperous India.
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