Govt Reforms Drive MSME Growth GVA Contribution Rises To 30.1% Amid Export Boom

(MENAFN- KNN India) New Delhi, Feb 5 (KNN) India's Micro, Small, and Medium Enterprises (MSME) sector has demonstrated remarkable growth and resilience, with its contribution to the nation's Gross Value Added (GVA) steadily increasing from 27.3 percent in 2020-21 to 30.1 percent in 2022-23.

This growth trajectory is particularly evident in the export sector, where MSME exports have surged significantly from Rs 3.95 lakh crore in 2020-21 to Rs 12.39 lakh crore in 2024-25, with the number of exporting MSMEs more than tripling from 52,849 to 1,73,350 during the same period.

The sector's integration into global trade has strengthened considerably, with its share in India's total exports reaching 45.79 percent by May 2024.

This achievement underscores the sector's growing prominence in positioning India as a competitive manufacturing and export hub in the international market.

The government's commitment to MSME development is evident through several targeted initiatives, including the PM Vishwakarma scheme, which was launched in September 2023 with an initial outlay of Rs 13,000 crores until 2027-28.

The scheme has already garnered over 2.65 crore applications, with 27.13 lakh successfully registered applicants set to receive comprehensive support including basic training and collateral-free credit.

The Udyam Registration Portal, introduced in July 2020, has emerged as a cornerstone of MSME formalisation, recording an impressive 5.93 crore registered enterprises as of February 2025.

These registered MSMEs have generated substantial employment opportunities, providing livelihoods to over 25.18 crore individuals across the country.

The launch of the Udyam Assist Platform in November 2023 further strengthens the government's efforts to integrate informal micro-enterprises into the formal economy.

The Prime Minister's Employment Generation Programme (PMEGP) has shown significant impact in 2023-24, supporting 89,118 enterprises with Rs 3,093.87 crore in margin money subsidies.

This initiative has resulted in the creation of approximately 7,12,944 employment opportunities, reinforcing the government's commitment to fostering entrepreneurship and job creation.

The Scheme of Fund for Regeneration of Traditional Industries (SFURTI) has also demonstrated notable success, with 376 functional clusters benefiting around 2,20,800 artisans through grants totaling Rs 1,336 crore.

Additionally, the Public Procurement Policy for MSEs has exceeded its targets, with government procurement from MSEs reaching Rs 74,717 crore in 2023-24, benefiting 2,58,413 enterprises and representing 43.71 percent of total procurement, well above the mandated 25 percent.

These comprehensive initiatives and their measurable outcomes reflect the government's strategic approach to strengthening the MSME sector, fostering inclusive economic growth, and enhancing India's competitive position in global markets.

(KNN Bureau)

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