“CNN Central News and Network – ITDC India ePress / ITDC News Bhopal:” In a remarkable feat, India’s micro, small, and medium enterprises (MSMEs) have created close to 10 crore jobs over the last 15 months, according to official data recorded on the government’s Udyam portal. This surge highlights the sector’s pivotal role in driving employment and economic growth.

Key Highlights

  • Job Growth: Employment in MSMEs rose from 13.15 crore in August 2023 to 23.14 crore in November 2024.
  • Women Employment: The sector provided 5.23 crore jobs for women.
  • MSME Registration Growth: The number of registered MSMEs increased from 2.33 crore to 5.49 crore, with 5.41 crore being micro enterprises, followed by 7.27 lakh small enterprises and 68,682 medium enterprises.
  • Informal Units: Around 2.38 crore informal micro units contributed to the employment boom, adding 2.84 crore jobs.

Union Budget 2024-25: Focus on MSMEs

Recognizing the sector’s potential, the Union Budget 2024-25 allocated ₹22,137.95 crore to the MSME Ministry, marking a 41.6% increase from the previous year. Key measures included:

  1. Collateral-Free Loans: Introduction of a new scheme for MSMEs to secure term loans for purchasing machinery and equipment without collateral or third-party guarantees. Guarantees up to ₹100 crore will be provided under a special guarantee fund.
  2. Mudra Loans: The limit for Mudra loans under the “Tarun” category was raised to ₹20 lakh for entrepreneurs with a history of timely repayments.
  3. Turnover Threshold Reduction: The turnover threshold for buyers was lowered from ₹500 crore to ₹250 crore to benefit MSMEs.
  4. Digital Transformation: Initiatives to enhance digital adoption among MSMEs, with only 6% currently selling on e-commerce platforms.
  5. Food Processing Support: Financial assistance for setting up food irradiation units and food quality testing labs.
  6. Improved Credit Access: Public sector banks were instructed to develop digital footprint scoring systems to evaluate MSME creditworthiness effectively.

A Catalyst for Growth

The MSME sector is critical to India’s economic framework, not just for its contribution to employment but also for driving innovation and entrepreneurship. Finance Minister Nirmala Sitharaman emphasized the need to bolster the sector, stating, “To facilitate term loans for MSMEs for the purchase of machinery and equipment without collateral and guarantee, a new scheme will be introduced. This guarantee fund will provide guarantees of up to ₹100 crore.”

As MSMEs continue to expand, they remain a cornerstone of India’s vision for inclusive economic development, demonstrating resilience and adaptability in the face of evolving market demands. With increased support and targeted initiatives, the sector is poised to sustain its growth trajectory and create even more opportunities in the coming years.