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MSME Exports Surge! From Rs 3.95 Cr in 2020-21 to Rs 12.39 Cr in 2024-25, Contribution to India's GDP Stands at a Massive...

The Micro, Small, and Medium Enterprises (MSME) sector has emerged as a cornerstone of India’s economic growth, showcasing remarkable achievements in exports, employment generation, and GDP contribution.

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Neha Kumari
New Update
MSME Exports

The Micro, Small, and Medium Enterprises (MSME) sector has emerged as a cornerstone of India’s economic growth, showcasing remarkable achievements in exports, employment generation, and GDP contribution. Between 2020-21 and 2024-25, MSME exports soared from ₹3.95 lakh crore to ₹12.39 lakh crore, while the number of exporting MSMEs surged from 52,849 to 1,73,350. The sector's export contribution, which stood at 45.73% in 2023-24, slightly increased to 45.79% by May 2024, underlining its critical role in global trade.

Steady Contribution to GDP Amid Challenges

The MSME sector's contribution to India’s GDP has consistently increased over the years. The Gross Value Added (GVA) by MSMEs rose from 29.7% in 2017-18 to 30.1% in 2022-23. Even during the COVID-19 pandemic, the sector demonstrated resilience, contributing 27.3% to GDP in 2020-21 and rebounding to 29.6% in 2021-22. These figures underscore the sector’s enduring importance to economic stability and growth.

Scaling Up: Transitioning Enterprises Reflect Growth

Since the revised MSME classification came into effect on July 1, 2020, the sector has witnessed significant scaling up of enterprises. From 2020-21 to 2021-22, 714 micro enterprises and 3,701 small enterprises transitioned to medium enterprises. By 2023-24 to 2024-25, these numbers had surged to 2,372 micro and 17,745 small enterprises upgrading to medium. This upward progression highlights the robust growth and adaptability of the sector.

The MSME sector remains pivotal in promoting entrepreneurship, generating employment, and fostering inclusive economic development. Through innovation and resilience, it provides millions of jobs and enhances export competitiveness, cementing its position as the backbone of India’s economy. As India strives to establish itself as a global economic powerhouse, the MSME sector will continue to play a central role in driving growth and ensuring sustainable development.