**Subject:** Analysis of MSME Closures and Female-Led Enterprises
This policy analysis summarizes data presented to the Lok Sabha on August 21, 2025, regarding Micro, Small, and Medium Enterprise (MSME) closures and female-led MSMEs in India. The data is based on registrations via the Udyam Registration Portal (URP), launched on July 1, 2020, and the Udyam Assist Platform (UAP), launched on January 11, 2023, for Informal Micro Enterprises (IMEs).
**Key Findings:**
* **MSME Closures:** 39,446 MSMEs shut down during the fiscal year 2024-25.
* **State-wise Closures:** The highest number of closures occurred in Maharashtra (9,702), followed by Tamil Nadu (4,900), Gujarat (3,534), Rajasthan (3,274), and Karnataka (2,187).
* **Female-Led MSMEs:** As of August 15, 2025, 26,475,048 women-owned enterprises, including IMEs, are registered on the URP. West Bengal accounts for 2,765,525 of these registered enterprises.
* **Historical Context:** Data from the National Sample Survey Office (NSSO) 73rd Round Report, referenced in the Ministry of MSME's 2023-24 Annual Report, estimated 12,390,523 women-owned proprietary MSMEs in the country, including 2,901,324 in West Bengal.
**Data Source:**
* Lok Sabha Unstarred Question No. 4726, Ministry of Micro, Small and Medium Enterprises, answered on August 21, 2025.
* Udyam Registration Portal (URP) data as of August 15, 2025.
* Ministry of MSME Annual Report 2023-24, referencing NSSO 73rd Round Report.
**Minister Responsible:**
* Sushri Shobha Karandlaje, Minister of State for Micro, Small and Medium Enterprises.
Key Entities Referenced
Ministry of Micro, Small and Medium Enterprises: The Indian government ministry responsible for the development of micro, small and medium enterprises.
MSMEs: An abbreviation for Micro, Small and Medium Enterprises.
Maharashtra: A state in India with the highest number of MSME closures during 2024-25 as per the document.
Tamil Nadu: A state in India with a high number of MSME closures during 2024-25 as per the document.
Gujarat: A state in India with a significant number of MSME closures during 2024-25 as per the document.
Rajasthan: A state in India with a significant number of MSME closures during 2024-25 as per the document.
Karnataka: A state in India with a significant number of MSME closures during 2024-25 as per the document.
Udyam Registration Portal: Online portal launched on 01.07.2020 for registration of Micro, Small and Medium Enterprises.
GOVERNMENT OF INDIA
MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES
LOK SABHA
UNSTARRED QUESTION NO. 4726
TO BE ANSWERED ON: 21.08.2025
CLOSURE OF MSMEs
4726. SHRI ABHISHEK BANERJEE:
Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:
(a) whether it is a fact that in 2024-25 more than 35,500 Micro, Small and Medium Enterprises
(MSMEs) were closed;
(b) whether it is a fact that the highest number of MSME closures occurred in Maharashtra,
followed by Tamil Nadu, Gujarat, Rajasthan and Karnataka and if so, the details thereof, State-wise;
and
(c) whether it is a fact that according to the Government's annual report in 2023, West Bengal
had the highest number of female-led MSMEs?
ANSWER
MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES
(SUSHRI SHOBHA KARANDLAJE)
(a) and (b): A revised definition based on the twin criteria of investment and turnover, was
adopted to define Micro, Small and Medium Enterprises (MSMEs) in 2020 and for registration,
Udyam Registration Portal (URP) was launched on 01.07.2020. On 11.01.2023, Udyam Assist
Platform (UAP) was launched for Informal Micro Enterprises (IMEs), which are exempted from
GST filing. From 01.07.2020 to 15.08.2025, 6.69 crore Enterprises, including IMEs, have registered
on URP.
MSMEs de-register for various reasons such as change of ownership, change of business
location, shut down and others. The number of MSMEs shut down during 2024-25 were 39,446.
MSMEs shutdown in Maharashtra, Tamil Nadu, Gujarat, Rajasthan and Karnataka during 2024-25
were 9,702, 4,900, 3,534, 3,274 and 2,187 respectively.
(c): The data referred has been quoted in the Annual Report of the Ministry of MSME in 2023-
24 which pertains to NSS 73rd Round Report by NSSO, which states, based on the estimation that
there were 1,23,90,523 women-owned proprietary MSMEs in the country, including 29,01,324 in
West Bengal.
Since inception of Udyam till 15.08.2025, a total of 2,64,75,048 women-owned Enterprises,
including IMEs, have registered on URP. Out of this 27,65,525 women-owned Enterprises are in
West Bengal.
*****