Indian MSMEs: 32.82 Cr Employed, 31% GDP Contribution 2025

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TL;DR: MSMEs employ 32.82 crore across 7.47 crore units and contribute 31.1% to GDP. Targeted credit, digital adoption, and global supply-chain integration are key to scaling growth.

Use business planning, digital marketing, and trend insights to prepare for export and manufacturing opportunities.

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MSMEs: The Backbone of India’s Industrial Growth

The Economic Survey 2025-26 highlights the central role of micro, small, and medium enterprises (MSMEs) in India’s economy. With 7.47 crore enterprises employing 32.82 crore people, the sector contributes 31.1% to GDP, 35.4% of manufacturing output, and 48.58% of exports. These numbers underline why MSMEs are critical for inclusive growth, regional development, and the nation’s long-term manufacturing ambitions.

Key Statistics at a Glance

• Enterprises: 7.47 crore
• Employment: 32.82 crore people (second only to agriculture)
• GDP contribution: 31.1%
• Manufacturing share: 35.4%
• Exports share: 48.58%
• India’s global manufacturing GVA share: 2.9%; merchandise exports: 1.8%

Credit and Policy Support Driving Growth

MSME credit led industrial credit growth in H1 FY26, outpacing lending to larger firms. The Self-Reliant India (SRI) Fund has committed significant capital, with investments of Rs 15,442 crore across 682 MSMEs as of November 30, 2025. Continued targeted credit, capacity-building and ecosystem support will determine how rapidly MSMEs scale into global supply chains.

Why MSMEs Matter for Global Integration

The survey emphasises that a calibrated deepening of participation in global supply chains, especially in labour-intensive and assembly-linked sectors, can accelerate job-rich industrialisation. Targeting advanced manufacturing, R&D-intensive innovation and a stronger ecosystem will boost competitiveness and help realise the Viksit Bharat@2047 trajectory.

Opportunities for MSMEs: Exports, Value-Addition, and Local Supply Chains

With India representing a small but growing portion of global manufacturing and exports, MSMEs have clear pathways to expand: increase local value addition, integrate with larger firms, and target export-oriented segments. Policymakers and industry must collaborate to improve logistics, reduce compliance friction, and promote technology adoption so MSMEs can capture higher-value segments.

How MSMEs Can Prepare and Scale

Practical steps for MSME owners and managers include improving business planning, strengthening access to formal credit, adopting digital marketing strategies, and investing in skill upgrades. For business owners crafting strategy or seeking structured planning resources, refer to business plan tools and free template for Indian MSMEs to build investor-ready plans and growth roadmaps.

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For decision-makers tracking macro shifts, monitor indicators such as credit flows to MSMEs, export composition, and regional investment patterns. Regularly reviewing economic insights and trends in India for MSMEs can help businesses and policymakers adapt strategies to evolving conditions.

Practical Next Steps for MSME Leaders

• Use a structured business plan to attract credit or partners.
• Prioritise digital channels and upskill teams for online sales.
• Engage with industry clusters to join global supply chains.
• Track credit trends and policy updates to time expansion plans.

Outlook

MSMEs are poised to be the engine of job-rich industrialisation if they receive sustained policy support, easier access to capital, and better market integration. By focusing on innovation, local value addition, and digital adoption, India’s MSMEs can expand their share of global manufacturing and exports while contributing to the Viksit Bharat@2047 vision.

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