MSMEs contribute 31.1% to GDP, account for over half of merchandise exports: Govt

Micro, Small and Medium Enterprises (MSMEs) contribute 31.1% to Gross Domestic Product (GDP), account for 50.6% of the country's merchandise exports, and generate 35.4% of manufacturing output, the government informed Parliament on Monday.

In a written reply to the Lok Sabha, Minister of State for MSME Shobha Karandlaje said 9.14 crore registered MSMEs provide employment to 40.67 crore people, according to data available on the Udyam Registration Portal.

The minister said the Ministry of MSME is implementing a range of schemes and policy initiatives to strengthen the sector through easier access to credit, equity funding, technology, infrastructure, market access, skill development, and entrepreneurship.

These include the Credit Guarantee Scheme (CGS) for Micro and Small Enterprises, Self-Reliant India (SRI) Fund, Prime Minister's Employment Generation Programme (PMEGP), MSE-GIFT, SPICE, Raising and Accelerating MSME Performance (RAMP), Micro and Small Enterprises-Cluster Development Programme (MSE-CDP), Procurement and Marketing Support (PMS), Entrepreneurship and Skill Development Programme (ESDP), MSME Champions, PM Vishwakarma, Technology Centre System Programme (TCSP), and the National SC/ST Hub, among others.

According to the minister, these initiatives are aimed at strengthening the MSME ecosystem and advancing the government's vision of an Atmanirbhar Bharat.

Govt steps up support to shield MSMEs from global disruptions

Responding to a separate query on protecting MSMEs from global supply chain and economic disruptions, Karandlaje said the government has constituted an Inter-Ministerial Group (IMG) and a sub-group to address trade and logistics challenges arising from geopolitical developments in West Asia.

The government has taken measures to enhance MSME resilience against supply chain disruptions, raw material price volatility, transportation bottlenecks, logistics challenges and working capital constraints.

As informed by the Department of Commerce, the Agricultural and Processed Food Products Export Development Authority (APEDA) is facilitating alternative shipping routes for perishable exports, while simplified customs procedures, support for stranded cargo and port-level interventions have also been introduced.

In addition, the Directorate General of Foreign Trade (DGFT) launched the Resilience & Logistics Intervention for Export Facilitation (RELIEF) initiative on March 19, 2026, under the Export Promotion Mission through the Export Credit Guarantee Corporation of India (ECGC) to address heightened export risks.

The government has also restored benefits under the Remission of Duties and Taxes on Exported Products (RoDTEP) scheme to offset higher freight, insurance and war-risk costs.

To ease liquidity pressures amid global uncertainties, the government launched the Emergency Credit Line Guarantee Scheme (ECLGS) 5.0 on May 5, 2026. The scheme provides for additional credit of ₹2.55 lakh crore, of which ₹2 lakh crore has been earmarked for MSMEs.

Under ECLGS 5.0, MSMEs receive 100% guarantee coverage on eligible loans while other business segments receive 90% coverage. As of July 14, 2026, the government had issued 4,65,807 guarantees amounting to ₹1.72 lakh crore under the scheme, Karandlaje said.