MSME sector records major gains in 2025 with surge in registrations, credit flow, Khadi sales

New Delhi [India], December 30 : India's Micro, Small and Medium Enterprises (MSME) sector recorded a year of significant expansion and structural strengthening in 2025, marked by accelerated formalisation, enhanced access to credit, revised classification thresholds and strong performance by Khadi and village industries, according to the Year End Review released by the Ministry of Micro, Small and Medium Enterprises.

A key highlight of the year was the rapid pace of formalisation, with over 7.3 crore enterprises registered on the Udyam Registration Portal and the Udyam Assist Platform as of December 17, 2025.

Of these, 4.37 crore enterprises registered on the Udyam Portal, while 2.92 crore informal micro enterprises were brought into the formal ecosystem through the Udyam Assist Platform, enabling access to priority sector lending and government support schemes.

To facilitate enterprise growth without loss of benefits, the Union Budget 2025-26 revised the MSME classification criteria, increasing investment limits by 2.5 times and turnover limits by two times, effective from April 1, 2025.

Under the revised norms, micro enterprises can invest up to Rs 2.5 crore with turnover of Rs 10 crore, while medium enterprises can invest up to Rs 125 crore with turnover of Rs 500 crore, allowing firms to scale operations without prematurely exiting the MSME framework.

Improved access to credit remained a central focus. Since its inception in 2008-09, the Prime Minister's Employment Generation Programme (PMEGP) has assisted over 10.71 lakh micro enterprises through margin money subsidies amounting to Rs 29,249.43 crore, generating estimated employment for more than 87 lakh persons.

During 2025 alone, 84,034 new micro enterprises were supported with subsidies of Rs 3,125.35 crore, creating employment for over 6.7 lakh people. The scheme also expanded accessibility by accepting applications in 19 regional languages.

The Credit Guarantee Scheme for Micro and Small Enterprises (CGSMSE) marked its 25th anniversary in 2025 and crossed the milestone of one crore guarantees since inception. Between January and November 2025, guarantees worth Rs 3.77 lakh crore were approved.

The government enhanced the guarantee coverage ceiling from Rs 5 crore to Rs 10 crore and introduced special provisions for enterprises promoted by transgender entrepreneurs.

Equity support under the Self Reliant India (SRI) Fund also gained momentum.

Since its launch, Rs 1,823 crore has been invested in 682 MSMEs. From January to November 2025 alone, investments of over Rs 613 crore were made to support 129 growth-oriented enterprises with high potential.

On the infrastructure and skilling front, the PM Vishwakarma Scheme achieved its target of 30 lakh beneficiary registrations within two years of implementation.

During 2025, 7.7 lakh artisans completed skill training, Rs 2,257 crore was sanctioned as collateral-free credit to 2.62 lakh beneficiaries, and 10.57 lakh modern toolkits were delivered at beneficiaries' doorsteps.

The Raising and Accelerating MSME Performance (RAMP) programme, supported by the World Bank, approved 398 projects worth Rs 3,211.75 crore across States and Union Territories, impacting more than 10 lakh MSMEs. Cluster-based development continued under the Micro and Small Enterprises Cluster Development Programme, with 609 projects approved since launch.

Khadi and village industries recorded one of their strongest performances. Khadi and Village Industries sales reached Rs 1.27606 lakh crore during the current financial year up to November 30, 2025, compared with Rs 1.10747 lakh crore in the corresponding period last year. Production also rose to Rs 85,072.32 crore, reflecting renewed momentum under the 'Vocal for Local' and 'Atmanirbhar Bharat' initiatives.

The coir sector recorded exports worth Rs 5,260.77 crore between January and October 2025, while the CHAMPIONS grievance redressal portal addressed 99.38 per cent of 1,62,546 grievances received, underscoring improved governance and responsiveness.

Overall, the Year End Review underscored 2025 as a year in which India's MSME ecosystem combined scale, inclusion and technology-enabled governance, reinforcing its role as a backbone of employment, entrepreneurship and regional development.

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