New Delhi: India’s Micro, Small and Medium Enterprises (MSME) sector recorded a year of significant expansion and structural strengthening in 2025, marked by accelerated formalisation, enhanced access to credit, revised classification thresholds and strong performance by Khadi and village industries, according to the Year End Review released by the Micro, Small and Medium Enterprises ministry.
A key highlight of the year was the rapid pace of formalisation, with over 7.3 crore enterprises registered on the Udyam Registration Portal and the Udyam Assist Platform as of December 17, 2025.
Of these, 4.37 crore enterprises registered on the Udyam Portal, while 2.92 crore informal micro enterprises were brought into the formal ecosystem through the Udyam Assist Platform, enabling access to priority sector lending and government support schemes.
To facilitate enterprise growth without loss of benefits, the Union Budget 2025-26 revised the MSME classification criteria, increasing investment limits by 2.5 times and turnover limits by two times, effective from April 1, 2025.
Under the revised norms, micro enterprises can invest up to Rs 2.5 crore with turnover of Rs 10 crore, while medium enterprises can invest up to Rs 125 crore with turnover of Rs 500 crore, allowing firms to scale operations without prematurely exiting the MSME framework.
Improved access to credit remained a central focus. Since its inception in 2008-09, the Prime Minister’s Employment Generation Programme (PMEGP) has assisted over 10.71 lakh micro enterprises through margin money subsidies amounting to Rs 29,249.43 crore, generating estimated employment for more than 87 lakh persons.
During 2025 alone, 84,034 new micro enterprises were supported with subsidies of Rs 3,125.35 crore, creating employment for over 6.7 lakh people. The scheme also expanded accessibility by accepting applications in 19 regional languages.
The Credit Guarantee Scheme for Micro and Small Enterprises (CGSMSE) marked its 25th anniversary in 2025 and crossed the milestone of one crore guarantees since inception. Between January and November 2025, guarantees worth Rs 3.77 lakh crore were approved.