Report: MSME contribution to country's economy to increase to 40% by 2027

The contribution of micro, small and medium enterprises to the GDP of the country is estimated to increase during the next few years. According to a Ugro report, the share of MSMEs in the country's GDP is currently 30% and is likely to increase to around 40% by 2027. According to the report, MSMEs will also play an important role in achieving the goal of a developed India by 2047. The contribution of MSMEs to the country's GDP during 2018 to 2022 was approximately 29-30%. By 2027, the contribution of MSMEs to GDP is estimated to increase to around 35-40%. One of the reasons for the growth is the rapid formalization of MSMEs through Udyam Portal. Since its launch in FY2021, registrations at the port have been doubling every year. The process of formalization has made it easier for small businesses to access government initiatives, such as financial assistance, subsidies, and greater market opportunities. The number of women-run MSMEs registering in the Udyam portal is increasing. One out of every five registered MSMEs is run by women and women-run MSMEs contribute to one out of every five jobs created. However, women-led MSMEs are smaller than their competitors and account for only Rs 1 in investment and turnover of Rs 10.

The budget expressed a commitment to MSME growth The central government also expressed commitment to support the growth of MSMEs. During the General Budget 2024-25, the government presented a comprehensive package related to the development of MSMEs as well as manufacturing. These include financing, regulatory reforms, technology support and some specific initiatives to encourage women entrepreneurs.