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Date: 2025-07-31 Category: Not Applicable State: Union Government Country: India

Parliament Question: Contribution of MSMEs in GDP and Export

Issued by Ministry of Micro, Small and Medium Enterprises · Not Applicable

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Executive Summary & Key Takeaways

Executive Summary: This document presents the Indian government's response to questions regarding the contribution of Micro, Small, and Medium Enterprises (MSMEs) to GDP and exports. It includes data on Udyam registrations, the MSME sector's share in GDP and exports, employment figures, and MSME closures since 2019-20. The data is current as of July 28, 2025, with some figures based on revised criteria effective April 1, 2025. Key Points / Main Content: Udyam Registration: * The Udyam Registration Portal (URP) was launched on July 1, 2020, for MSME registration, which is free and based on self-declaration. * The Udyam Assist Platform (UAP), in collaboration with SIDBI, was launched on January 11, 2023, to formalize informal micro-enterprises (IMEs) that are exempt from GST. * Annexure I provides the year-wise data on registered enterprises since 2021-22, as of July 28, 2025, including micro, small, medium, and informal micro-enterprises. MSME Contribution to GDP and Exports: * The year-wise share of MSMEs in Gross Value Added (GVA) and exports since 2019-20 is provided. * MSME contribution to GDP: 31.8 (2019-20), 29.1 (2020-21), 31.1 (2021-22), 31.3 (2022-23), and 31.1 (2023-24). * MSME contribution to Exports: 49.77 (2019-20), 49.35 (2020-21), 45.03 (2021-22), 43.59 (2022-23), and 45.73 (2023-24). Employment in MSME Sector: * Annexure II details the total number of declared employment by registered MSMEs, state/UT-wise and year-wise, from July 1, 2020, to July 15, 2025. MSME Closures: * Enterprises deregister or show closure for various reasons, including certificate no longer required, duplicate registration, or change in ownership. * The number of MSMEs shut down constitutes 0.15% of those registered since the definition revision on July 1, 2020. * Annexure III provides state/UT-wise data on the total number of MSMEs that have shut down or become non-operational since 2020-21. Impact Analysis: MSMEs: * Impact: MSMEs need to be aware of the Udyam Registration process and the benefits of registration, including access to government schemes and support. They should also be aware of the reasons for deregistration and ensure accurate information on the portal. * Action Required: MSMEs should register on the Udyam portal, update their information as needed, and understand the reasons for potential deregistration. Informal Micro Enterprises (IMEs): * Impact: IMEs now have a platform (UAP) to formalize their businesses, even if GST-exempt, potentially leading to better access to credit and government support. * Action Required: IMEs should register on the Udyam Assist Platform through designated agencies. Government (Ministry of MSME): * Impact: The ministry is responsible for tracking and reporting on the MSME sector's performance, including registration, contribution to GDP and exports, and employment. * Action Required: The ministry needs to continue monitoring the Udyam Registration Portal and UAP, analyze the data on MSME closures, and formulate policies to address the challenges faced by the sector. SIDBI (Small Industries Development Bank of India): * Impact: SIDBI plays a role in formalizing IMEs through the Udyam Assist Platform. * Action Required: SIDBI needs to collaborate with the Ministry of MSME and designated agencies to onboard IMEs onto the UAP. Ministry of Statistics and Programme Implementation: * Impact: Provides data on MSME's contribution to Gross Value Added (GVA). * Action Required: Continue to track and provide accurate data on the MSME sector's contribution to the economy. Designated Agencies: * Impact: Responsible for onboarding IMEs through Udyam Assist Platform (UAP). * Action Required: Facilitate the registration process for IMEs on the UAP.

Key Entities Referenced

Ministry of Micro, Small and Medium Enterprises: The Indian government ministry responsible for the formulation and administration of rules, regulations and laws relating to micro, small and medium enterprises in India. Lok Sabha: The lower house of the Parliament of India. Udyam Registration Portal: An online portal for registering micro, small, and medium enterprises (MSMEs) in India. Udyam Assist Platform: A platform launched to formalize Informal Micro Enterprises (IMEs), which are exempted from GST, onboarding them through Designated Agencies. SIDBI: Small Industries Development Bank of India, an all India Financial Institution for promotion, financing and development of Micro, Small and Medium Enterprises (MSMEs). Gross Value Added: As per the information received from Ministry of Statistics Programme Implementation, the yearwise share of MSME in Gross Value Added DGCIS: Directorate General of Commercial Intelligence and Statistics, from where the share of exports culled out. Andhra Pradesh: A state in India mentioned in the annexure II and III, providing StateUTwise data about employment and MSME shutdown
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GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES LOK SABHA UNSTARRED QUESTION NO. 1873 TO BE ANSWERED ON: 31.07.2025 CONTRIBUTION OF MSMEs IN GDP AND EXPORT 1873. ADV DEAN KURIAKOSE: DR. AMAR SINGH: SHRI BALWANT BASWANT WANKHADE: SHRI RAMASAHAYAM RAGHURAM REDDY: Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state: (a) the total number of micro, small, medium and informal microenterprises registered on the Udyam Registration Portal since 2021-22, year-wise; (b) the total number of applications received and successfully registered on the Udyam Registration Portal since 2021-22, year-wise; (c) the percentage of growth of contribution of the MSME sector to the GDP and share of exports since 2019-20, year-wise; (d) the total number of people employed in the micro, small, medium and informal microenterprises sector from 2020-21, breakup of data, State and year-wise; (e) the number of MSMEs that have shut down or become non-operational since 2020-21, year- wise; and (f) whether any reasons or patterns have been identified in these closures and measures taken to address them and if so, the details thereof? ANSWER MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE) (a) and (b): Udyam Registration Portal (URP) was launched on 01.07.2020 for registration of Micro, Small and Medium Enterprises (MSMEs). Udyam Registration is free of cost and anyone can self register. To formalize Informal Micro Enterprises (IMEs), which are exempted from GST, Udyam Assist Platform (UAP) was launched on 11.01.2023, in collaboration with SIDBI which onboard these IMEs through Designated Agencies. The total number of registered Enterprises since 2021-22, year- wise, as on 28.07.2025 are given at Annexure-I. (c): As per the information received from Ministry of Statistics & Programme Implementation, the year-wise share of MSME in Gross Value Added (GVA) and share of exports as culled out from DGCIS portal since 2019-20, is as given below: Year 2019-20 2020-21 2021-22 2022-23 2023-24 Contribution of 31.8 29.1 31.1 31.3 31.1 MSME in GDP (%) Contribution of 49.77 49.35 45.03 43.59 45.73 Export in GDP (%) (d): The details of total number of employment declared by MSMEs registered, State/UT-wise and year-wise, since 2020-21, as on 28.07.2025 are given at Annexure-II. (e) and (f): Enterprises de-register or show closure on the Portal due to a number of reasons such as certificate not required anymore, duplicate registration, change in the company owner and such other reasons. The number of MSMEs shut down as a proportion of the total those which have registered since the revision in the definition on 01.07.2020 is 0.15%. The details of total number of MSMEs shut down, State/UT-wise, since 2020-21, is given at Annexure-III. *****Annexure-I Annexure-I referred to in reply to part (a) & (b) of Lok Sabha Unstarred Question No. 1873 for answer on 31.07.2025. Total number of MSMEs Year-Wise Informal FY Micro Small Medium Micro Enterprises 2021-22 48,59,144 244,037 19,648 - 2022-23 70,61,894 145,128 7,641 13,32,489 2023-24 94,85,927 89,505 4,580 1,53,13,516 2024-25 1,06,84,542 51,624 3,657 99,15,450 2025-26 (01/04/2025 - 30,51,573 6,562 1,077 7,66,661 15/07/2025) Report Dated:- 28.07.2025 02:45 PM based on the revised criteria w.e.f. 01.04.2025 Source: Udyam Registration Portal & UAPAnnexure-II Annexure-II referred to in reply to part (d) of Lok Sabha Unstarred Question No. 1873 for answer on 31.07.2025. The details of total number of employment declared by MSMEs registered, State/UT-wise and year-wise, from 01.07.2020 to 15.07.2025 Sl. State 2020-21 2021-22 2022-23 2023-24 2024-25 2025-26 Total No. Andaman 1 and Nicobar 10,182 172,946 35,345 14,984 18,225 25,994 277,676 Islands Andhra 2 Pradesh 704,653 1,231,030 2,625,446 3,667,748 8,372,465 1,049,171 17,650,513 Arunachal 3 Pradesh 14,698 20,169 38,053 53,597 86,128 16,538 229,183 4 Assam 233,336 554,154 919,077 1,644,025 2,877,225 1,022,105 7,249,922 5 Bihar 678,053 1,421,019 2,113,223 3,625,965 4,247,532 1,227,094 13,312,886 6 Chandigarh 101,641 65,373 67,876 73,772 66,029 19,714 394,405 7 Chhattisgarh 279,304 398,047 549,972 1,045,807 1,206,663 272,778 3,752,571 Dadra and Nagar Haveli 8 and Daman 65,535 46,792 42,713 49,085 37,023 13,882 255,030 and Diu 9 Delhi 1,345,665 1,197,976 1,229,007 2,156,935 1,551,268 441,196 7,922,047 10 Goa 66,488 58,401 82,087 113,323 88,357 20,317 428,973 11 Gujarat 2,447,455 2,212,055 2,420,218 3,761,774 3,098,789 804,784 14,745,075 12 Haryana 1,286,918 1,182,461 1,246,279 1,734,703 2,006,449 600,868 8,057,678 Himachal 13 Pradesh 140,008 173,447 185,758 377,847 344,627 75,759 1,297,446 Jammu and 14 Kashmir 192,472 380,985 677,100 776,487 737,811 116,001 2,880,856 15 Jharkhand 374,385 660,472 889,983 1,395,141 1,359,833 348,403 5,028,217 16 Karnataka 1,951,276 2,722,252 3,491,710 5,564,104 7,976,733 1,490,370 23,196,445 17 Kerala 665,799 753,668 826,390 1,474,842 1,360,074 327,378 5,408,151 18 Ladakh 4,697 11,366 13,722 14,273 8,117 2,197 54,372 Lakshadwee 19 p 223 802 1,373 1,582 2,155 365 6,500 Madhya 20 Pradesh 820,169 1,356,498 2,250,375 3,289,174 3,855,406 976,376 12,547,998 21 Maharashtra 4,409,808 4,498,783 4,868,596 6,696,195 6,859,462 1,764,105 29,096,949 22 Manipur 90,178 116,675 144,636 152,389 180,257 45,090 729,225 23 Meghalaya 7,431 19,360 31,054 53,303 110,856 39,183 261,187 24 Mizoram 9,380 20,640 68,965 57,573 47,390 8,440 212,38825 Nagaland 7,982 26,130 45,970 74,677 86,428 19,483 260,670 26 Odisha 574,500 943,213 1,273,413 3,707,282 2,465,432 634,710 9,598,550 27 Puducherry 39,740 55,484 56,820 105,790 89,514 16,917 364,265 28 Punjab 904,165 934,359 1,154,651 1,723,604 3,114,885 533,951 8,365,615 29 Rajasthan 1,532,614 2,366,875 2,764,463 3,599,080 4,573,177 1,219,816 16,056,025 30 Sikkim 3,408 10,578 15,265 23,789 57,432 8,919 119,391 31 Tamil Nadu 3,305,234 4,011,295 4,621,580 7,390,860 6,848,400 1,492,483 27,669,852 32 Telangana 1,639,002 1,931,782 2,543,249 4,270,126 4,114,614 1,235,896 15,734,669 33 Tripura 15,478 78,257 174,215 374,258 310,158 92,907 1,045,273 Uttar 34 Pradesh 2,081,727 2,834,622 4,917,794 7,828,348 8,589,126 3,163,074 29,414,691 35 Uttarakhand 215,631 398,624 401,149 575,321 601,540 271,024 2,463,289 36 West Bengal 1,098,936 2,018,473 2,801,175 6,507,875 5,281,914 1,144,887 18,853,260 Total:- 27,318,171 34,885,063 45,588,702 73,975,638 82,631,494 20,542,175 284,941,243 Report Dated:- 28.07.2025 02:45 PM based on the revised criteria w.e.f. 01.04.2025 Source: Udyam Registration Portal & UAPAnnexure-III Annexure-III referred to in reply to part (e) & (f) of Lok Sabha Unstarred Question No. 1873 for answer on 31.07.2025. The details of total number of MSMEs shut down or non-operational, State/UT-wise, from 01.07.2020 to 15.07.2025 Sl. State 2020- 2021- 2022- 2023- 2024- 2025- Total No. 21 22 23 24 25 26 1 Andaman and Nicobar - 9 12 26 47 17 111 Islands 2 Andhra Pradesh - 113 261 499 1,401 648 2,922 3 Arunachal Pradesh - - 1 2 - 7 10 4 Assam - 8 28 47 46 20 149 5 Bihar 18 541 547 677 1,828 500 4,111 6 Chandigarh 1 21 8 12 31 5 78 7 Chhattisgarh 4 64 134 249 459 288 1,198 8 Dadra and Nagar - 7 16 28 43 15 109 Haveli and Daman and Diu 9 Delhi - 210 470 203 139 62 1,084 10 Goa 3 5 17 61 89 41 216 11 Gujarat 67 492 1,074 2,307 3,534 1,429 8,903 12 Haryana 16 151 404 842 271 92 1,776 13 Himachal Pradesh 2 8 86 38 287 78 499 14 Jammu and Kashmir - 51 121 241 566 341 1,320 15 Jharkhand - 134 251 365 734 274 1,758 16 Karnataka 4 272 534 822 2,187 980 4,799 17 Kerala 2 137 339 591 1,157 541 2,767 18 Ladakh - 1 2 3 15 4 25 19 Lakshadweep - - - - 1 3 4 20 Madhya Pradesh 1 112 548 552 1,961 741 3,915 21 Maharashtra 3 1,831 3,276 4,800 9,702 3,716 23,328 22 Manipur - - 62 33 186 65 346 23 Meghalaya - 1 1 1 - 2 5 24 Mizoram - 1 2 5 21 16 45 25 Nagaland - 1 5 7 16 14 43 26 Odisha 1 118 212 431 875 435 2,072 27 Puducherry - 8 39 56 119 33 255 28 Punjab - 208 88 65 155 74 590 29 Rajasthan 11 312 1,068 1,682 3,274 1,260 7,607 30 Sikkim - - 1 - 1 67 69 31 Tamil Nadu 2 591 1,900 2,589 4,900 1,919 11,901 32 Telangana 2 128 102 220 1,981 666 3,099 33 Tripura - 8 6 10 26 28 78 34 Uttar Pradesh 20 494 1,110 1,444 1,368 1,072 5,508 35 Uttarakhand 1 32 202 234 448 199 1,116 36 West Bengal 17 153 363 686 1,578 817 3,614 Total:- 175 6,222 13,290 19,828 39,446 16,469 95,430 Report Dated:- 28.07.2025 02:45 PM based on the revised criteria w.e.f. 01.04.2025 Source: Udyam Registration Portal & UAP

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