Home India Ministry of Micro, Small and Medium Enterprises Parliament Question: Impact of MSME Schemes...
Date: 2025-08-07 Category: Not Applicable State: Union Government Country: India

Parliament Question: Impact of MSME Schemes

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 Ministry of MSME's response to questions regarding the MSME sector's contribution to GDP, employment, and exports, along with the impact of specific MSME schemes. It includes data on MSME contributions, employment generated through the Udyam Registration Portal, and the performance of schemes like PMEGP and SFURTI up to specified dates in July/August 2025. The document also provides state-wise figures for MSME registrations and employment across various social categories. **Key Points / Main Content:** * **MSME Contribution:** * In 2023-24, MSMEs contributed 31.1% to India's Gross Value Added (GVA) in GDP. * MSME exports accounted for 45.73% of all India exports in 2023-24. * **Udyam Registration Portal:** * Launched on 01.07.2020 with revised MSME classification criteria. * From 01.07.2020 to 31.07.2025, the portal reported 28.73 crore jobs. * Investment and turnover limits for MSME classification have been enhanced to 2.5 and 2 times respectively based on 2025 budget announcements. * **Prime Minister's Employment Generation Programme (PMEGP):** * Implemented by KVIC to create employment in rural areas by assisting entrepreneurs in setting up new micro-enterprises in the non-farm sector. * Margin Money (MM) subsidy for General Category beneficiaries: 25% of the project cost in rural areas and 15% in urban areas. * MM subsidy for Special Categories (SC, ST, OBC, Minorities, Women, Ex-servicemen, Physically Handicapped, Transgenders, NER, Hill/Border areas, Aspirational Districts): 35% in rural areas and 25% in urban areas. * Beneficiary contribution: 5% for Special Categories and 10% for General Category. * From FY 2021-22 to 29.07.2025, PMEGP assisted 13,211 units and generated 1,05,688 jobs in Maharashtra (including Daman and Diu). * During the same period, PMEGP assisted 22,794 units and generated 1,82,352 jobs in Madhya Pradesh. * **Scheme of Fund for Regeneration of Traditional Industries (SFURTI):** * Continued until 30.09.2022, benefitting 3 lakh traditional artisans across 513 clusters nationwide. * Maharashtra has 29 SFURTI clusters, including 2 in aspirational districts. * Madhya Pradesh has 45 SFURTI clusters, with 5 in aspirational districts. * **MSME Registration (State-wise):** * Annexure I provides state-wise data on MSME registrations under Udyam and UAP, broken down by SC, ST, OBC, Women, and total employment reported up to 31.07.2025. **Impact Analysis** * **MSMEs:** * *Impact:* Revised MSME definitions based on enhanced investment and turnover limits. Access to schemes like PMEGP and SFURTI for growth and employment generation. Udyam registration facilitates access to government benefits. * *Action Required:* Register on the Udyam portal to avail benefits. Understand revised classification criteria and eligibility for schemes. * **Entrepreneurs (Especially in Rural/Backward Areas):** * *Impact:* PMEGP offers financial assistance (margin money subsidy) to set up new micro-enterprises, with higher subsidy rates for special categories. SFURTI supports traditional industries. * *Action Required:* Evaluate opportunities under PMEGP and SFURTI. Prepare project proposals to apply for financial assistance. * **Government (Ministry of MSME, KVIC):** * *Impact:* Accountable for monitoring and evaluating the performance of MSME schemes. Responsible for achieving targets related to employment generation and MSME growth. * *Action Required:* Continue implementing and monitoring PMEGP and SFURTI. Analyze data from Udyam portal to assess the impact of schemes and refine strategies. * **Artisans:** * *Impact:* SFURTI provides support for traditional industries, benefitting 3 lakh artisans across the country. * *Action Required:* Engage with SFURTI clusters to leverage available support for traditional industries.

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. Prime Minister's Employment Generation Programme: A credit-linked subsidy program in India aimed at generating employment opportunities by assisting entrepreneurs in setting up micro-enterprises in non-farm sector. Scheme of Fund for Regeneration of Traditional Industries: An initiative to organize traditional industries and artisans into clusters to make them competitive and provide sustained employment. Maharashtra: A state in the western peninsular region of India. Madhya Pradesh: A state in central India. Udyam Registration Portal: An online platform launched by the Ministry of MSME for MSME registration, featuring revised criteria for MSME classification. Khadi and Village Industries Commission: A statutory body engaged in promoting and developing khadi and village industries. Gross Domestic Product: The total monetary or market value of all the finished goods and services produced within a country’s borders in a specific time period
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GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES LOK SABHA UN STARRED QUESTION No. 3086 TO BE ANSWERED ON 07.08.2025 IMPACT OF MSME SCHEMES 3086. SHRI OMPRAKASH BHUPALSINH ALIAS PAVAN RAJENIMBALKAR: SHRI SANJAY UTTAMRAO DESHMUKH: SHRI ARVIND GANPAT SAWANT: SMT. BHARTI PARDHI: SHRI SHRIRANG APPA CHANDU BARNE: Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state: (a) the latest assessment of the MSME sector’s contribution to GDP, employment generation and total exports; (b) the comparative analysis of these contributions with the targets set for the sector and the specific steps being taken to increase it further, particularly towards the goal of a five trillion dollar economy; (c) the specific impact of MSME schemes such as the Prime Minister's Employment Generation Programme and the Scheme of Fund for Regeneration of Traditional Industries on job creation and entrepreneurship in rural, semi-urban, industrially backward regions and aspirational districts of the country particularly in Maharashtra and Madhya Pradesh; (d) whether there are disaggregated figures available for employment generated for youth, women, Scheduled Castes, Scheduled Tribes and other marginalised groups; and (e) if so, the details thereof, State-wise? ANSWER MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE) (a) & (b): As per the information received from Ministry of Statistics & Programme Implementation, the share of MSME in Gross Value Added (GVA) in Gross Domestic Product (GDP) during 2023-24 was 31.1% and share of MSME exports in all India exports during 2023-24 as culled out from Directorate General of Commercial Intelligence and Statistics (DGCIS) portal was 45.73%. Udyam Registration Portal was launched on 01.07.2020 with the revised criteria for classification of MSMEs. As on 04.08.2025, the employment reported on the Udyam Registration Portal (including Udyam Assist Platform) in all India from 01.07.2020 to 31.07.2025 was 28.73 crore. To promote the transformation of Micro, Small and Medium Enterprises (MSMEs) and support their expansion, the Government of India announced the revised definition of MSMEs in Budget Announcements 2025 and the investment and turnover limits for classification of all MSMEs has been enhanced to 2.5 and 2 times respectively.: 2 : (c) to (e): Ministry of MSME, through Khadi and Village Industries Commission (KVIC), is implementing Prime Minister’s Employment Generation Programme (PMEGP). It is central sector scheme generating employment opportunities primarily in rural areas by assisting prospective entrepreneurs in setting up new micro enterprises in the non-farm sector across the country, including Maharashtra and Madhya Pradesh. PMEGP assists General Category beneficiaries with Margin Money (MM) subsidy of 25% of the project cost in rural areas and 15% in urban areas. For beneficiaries belonging to Special Categories such as Scheduled Castes, Scheduled Tribes, OBCs, Minorities, Women, Ex-servicemen, Physically Handicapped, Transgenders, beneficiaries belonging to Northeastern Region, Hill and Border areas, and Aspirational Districts, the Margin Money subsidy is 35% in rural areas and 25% in urban areas. Own contribution of beneficiaries under Special Category is 05% and 10% for General Category beneficiaries. During FY 2021-2022 to FY 2025-26 (upto 29.07.2025), the no. of units assisted and estimated employment generated in Maharashtra (including Daman and Diu)under PMEGP are 13,211 and 1,05,688 respectively. During FY 2021-2022 to FY 2025-26 (upto 29.07.2025), the no. of units assisted and estimated employment generated in Madhya Pradesh under PMEGP are 22,794 and 1,82,352 respectively. The details of State-wise MSME’s registered by SC, ST, OBC, women and total employment reported on Udyam Registration Portal(including Udyam Assist Platform)from 01.07.2020 to 31.07.2025 is given in Annexure-I. Scheme of Fund for Regeneration of Traditional Industries (SFURTI) was in continuation till 30.09.2022. Under the SFRUTI, a total of 513 clusters has been benefitting 3 lakh traditional artisans, across the country. There is a total of 29 SFURTI clusters in Maharashtra, including 2 clusters in aspirational districts. Madhya Pradesh has 45 SFURTI clusters, out of which 5 are in aspirational districts ***Annexure-I Annexure I referred to in part (c) to (e) of reply to Lok Sabha Unstarred Question No. 3086 due for answer on 07.08.2025. State-Wise MSMEs Registered under Udyam and UAP Since Inception till 31/07/2025 Sl. Employment State SC ST OBC Total Women No. Reported ANDHRA 1 3,92,953 70,888 13,56,195 33,99,310 19,09,223 1,76,84,577 PRADESH ARUNACHAL 2 596 29,729 1,584 39,560 17,730 2,20,401 PRADESH 3 ASSAM 1,06,369 1,10,570 2,64,505 11,99,893 4,24,977 73,40,594 4 BIHAR 3,28,876 71,403 17,83,562 36,15,372 17,18,768 1,34,75,537 5 CHHATTISGARH 1,13,444 1,07,912 4,57,183 11,51,194 4,96,031 37,65,172 6 GOA 2,366 4,864 15,645 1,14,063 43,675 4,36,554 7 GUJARAT 2,17,369 1,70,392 9,43,553 37,79,615 10,38,175 1,48,98,156 8 HARYANA 2,50,452 9,753 3,90,067 17,05,948 4,70,616 82,00,805 HIMACHAL 9 54,724 12,407 25,130 2,96,806 66,693 13,02,526 PRADESH 10 JHARKHAND 97,531 81,705 5,20,173 13,31,866 6,26,060 50,80,302 11 KARNATAKA 4,75,950 1,86,758 15,20,528 43,92,344 19,64,978 2,33,64,642 12 KERALA 74,256 7,771 6,65,618 16,00,640 7,59,005 54,25,533 MADHYA 13 5,46,908 2,77,306 19,34,566 41,75,978 15,15,629 1,26,13,093 PRADESH 14 MAHARASHTRA 8,07,450 2,24,679 19,39,521 87,00,197 30,67,364 2,94,62,353 15 MANIPUR 8,892 21,959 32,692 1,49,337 82,766 7,32,218 16 MEGHALAYA 1,026 40,862 928 54,839 27,275 2,63,919 17 MIZORAM 252 42,165 90 45,357 26,740 2,12,660 18 NAGALAND 802 48,497 1,201 61,440 31,905 2,61,012 19 ODISHA 2,55,664 1,13,486 5,81,836 20,68,281 9,14,238 96,70,995 20 PUNJAB 3,46,807 5,578 1,73,344 18,53,785 5,72,349 84,55,836 21 RAJASTHAN 4,70,526 2,17,438 17,90,091 37,88,987 9,37,035 1,61,32,356 22 SIKKIM 1,922 7,802 8,362 29,339 14,854 1,19,090 23 TAMIL NADU 3,64,248 23,723 14,65,754 53,44,057 23,54,170 2,78,56,442 24 TELANGANA 2,84,721 1,41,497 10,29,493 26,06,573 11,83,265 1,58,85,812 25 TRIPURA 58,281 40,044 54,036 2,73,358 1,77,097 10,62,837 26 UTTAR PRADESH 9,35,833 61,342 31,86,159 71,58,218 22,73,255 2,97,60,201 27 UTTARAKHAND 61,170 9,408 1,26,102 5,46,659 1,67,868 23,95,232 28 WEST BENGAL 5,56,184 51,501 2,71,607 46,01,676 27,49,253 1,90,12,978

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