India’s MSME (Micro, Small & Medium Enterprises) sector is nothing short of a lifeline for the nation. With over 6.3 crore enterprises, it contributes around 30% of GDP, generates roughly 25-28 crore jobs and accounts for nearly 46% of the country’s exports. In manufacturing alone, MSMEs account for some 35% of output. Remarkably, exports from MSMEs grew from Rs 3.95 lakh crore in FY 2020–21 to about Rs.12.39 lakh crore in FY 2024–25, even as the number of exporting firms tripled to around 1.73 lakh. These numbers are more than just data points. They reflect resilience, opportunity, and aspiration across the length and breadth of our vast country.
India’s GDP growth trajectory is critically interlinked with and underpinned by MSME expansion. By decentralising production and employment, MSMEs help cushion against external shocks like global supply chain disruptions. In rural India, they arrest migration, drive local prosperity, and decentralize wealth creation.
The Government of India has taken a multi-pronged approach to bolster the MSME sector, recognising its critical role in employment, exports, and inclusive growth. Flagship initiatives such as the Udyam Registration portal have simplified the process of formalising enterprises, with over 6.5 crore MSMEs now registered. Credit access has been enhanced through the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), which offers collateral-free loans and has supported over one crore loan guarantees. The Emergency Credit Line Guarantee Scheme (ECLGS) launched during the pandemic has also been extended to cushion MSMEs against financial shocks. Schemes like PMEGP (Prime Minister’s Employment Generation Programme) and PM Vishwakarma offer support for traditional artisans, while SAMARTH and ZED Certification promote skill development and quality enhancement. To boost competitiveness and market access, the Government e-Marketplace (GeM) has onboarded over 10 lakh MSME sellers, facilitating direct procurement from ministries and PSUs. These interventions, alongside PLI schemes in select sectors, aim not just to sustain MSMEs but to help them scale, innovate, and compete globally.
In West Bengal, MSMEs are doing more than economic heavy lifting. They are cultural and social game-changers. The state houses over 93 lakh MSME units, topping the country in numbers and leading in women‑led enterprises. These enterprises generate tens of millions of livelihoods, especially in semi-urban and rural pockets. Women-led units are key to inclusive growth, raising household incomes and empowering communities. Manufacturing here is a notable strength, with Bengal accounting for roughly 13–14% of the country’s MSME manufacturing presence. Empowered by schemes like Biswa Bangla, cluster funding, and a Rs 1,229 crore state budget (2024–25) dedicated to MSME infrastructure and machinery, traditional handicrafts, food processing, and textiles are finding a new lease of life in both domestic and global markets.
The image of MSMEs as low-tech is fast undergoing a major change. Digital engagement is soaring—an estimated 72% of MSME transactions are digital now. Central platforms like Udyam and GeM have democratised opportunities for small players. At the same time, the CGTMSE has built a financing revolution—over 1 crore loan guarantees totalling Rs. 5.2 lakh crore, with AI‑powered risk tools slashing approval times by 30%. Hence, it’s fair to say that the MSME sector is fast adopting and reaping the benefits of the tech revolution in our country.
To truly unlock the transformative potential of India’s and Bengal’s MSMEs, the focus now must shift from support to strategic scaling. One of the most urgent priorities is enabling micro and small units to grow into medium-sized enterprises. These are the firms that typically command higher productivity, deeper market linkages, and better export capacity. Given that medium enterprises constitute less than 1% of total MSMEs yet contribute to nearly 40% of MSME exports, the opportunity is clear. By equipping smaller firms with access to better infrastructure, quality control, upskilling programs, and global certifications, India can empower thousands of enterprises to climb the value chain.
Equally vital is the deepening of fintech-enabled finance. Integrating digital public infrastructure, such as the Account Aggregator framework and UPI stack, into MSME financing can radically improve access and affordability.
Technology integration must also become a two-way street where MSMEs are not just beneficiaries but active innovators. This calls for stronger partnerships between industry and academia, especially in states like West Bengal which lead the country in this sector. Universities, ITIs, and technical institutes can collaborate with local MSME clusters to build shared innovation labs, conduct joint R&D, and incubate design and digital manufacturing ideas. Bengal’s textile, agro-processing, and metalwork sectors are ripe for such transformation, and co-locating tech hubs within these traditional strongholds can spark a renaissance of smart, heritage-based manufacturing.
India’s MSMEs are not just small enterprises—they are nation‑shaping engines. They offer a path to resilient, inclusive growth and global competitiveness. As India marches toward becoming a five trillion‑dollar economy, MSMEs—tiny but mighty—will carry the nation forward!
The author is the Group CEO of Techno India Group, a visionary and an educator. Beyond his corporate role, he is also a mentor who guides students towards resilience and self-discovery