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23 Annual Report 2022-23
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MSE Sector: Overview &
Growth prospects
Background number of MSME corporate Ministry has replaced the
entities is expected to touch erstwhile process of filing of
Across the world, June 27 is 750 lakh by FY 23. Of these, Udyog Aadhaar Memorandum,
earmarked to celebrate the around 500 lakh are expected by ‘Udyam’ registration on a
Micro, Small, and Medium to be NTC MSMEs. Lenders portal developed by this Ministry
Enterprises (MSMEs) and their based on composite criteria
immense contribution to the of classification of MSMEs,
economy. The Micro, Small & From the food that we eat notified vide Notification dated
Medium Enterprises (MSMEs) to the car that we drive – 26.06.2020. An analysis of
have been contributing it would not be wrong to Udayam Registration provides
significantly to the expansion say that every product in a break-up of Manufacturing
of entrepreneurial endeavours our lives has seen some and Services MSMEs. It may be
through business innovations. contribution of MSMEs. noted that MSMEs in Service
The MSMEs in India are playing Small businesses have an Sector (72%) comprise a
a crucial role by providing large outsized impact on our lives larger proportion of Udayam
employment opportunities at Registration as compared to
comparatively lower capital cost – Shri Narayan Rane those MSMEs in Manufacturing
than large industries as well as Hon’ble Union Minister, MSME Sector (28%). Furthermore,
through industrialization of rural Micro enterprises (96%)
& backward areas, inter alia, constitute the vast majority of
reducing regional imbalances, can tap into this vast segment the enterprises followed by the
assuring more equitable by identifying deserving NTC Small Enterprises (3%) and the
distribution of national income MSMEs, connecting with them Medium Enterprises (1%) of the
and wealth. It is undoubtedly and customizing credit products total of Udayam Registration
the backbone of the Indian for their requirements The Ministry of MSME runs
Economy as nearly 6 crore plus numerous schemes targeted at:-
MSMEs contribute almost 30% MSE Sector
to the country’s GDP, make up Overview & a) providing credit and financial
for almost 50% of the country’s assistances,
total exports and provides Government b) skill development training,
employment to over 113 million initiatives c) infrastructure development,
people. d) marketing assistance,
India has approximately 630 The progressive reforms e) technological and quality
lakh MSME corporates of which introduced by the government upgradation and,
only 250 lakh have ever availed for the MSME sector resurgence f) Other Services for the MSMEs
credit from formal sources. While have borne fruit as reflected in across the country.
the sector continues to grow at the vigorous business activity The Government of India
a projected compound annual and improved credit uptake in (GoI) has been very proactive
growth rate (CAGR) of 2.5%, the micro and small segments.
4 Source: Annual Report of MoMSME 2023, MSME Pulse report August 2023
