India’s MSME Growth Story

1. The definition of Micro, Small and Medium Enterprises (MSMEs) was revised with effect from 1 April 2025 based on investment and annual turnover.

2. As of January 2026, the MSME sector contributes about 31.1% to India’s Gross Domestic Product (GDP), 35.4% to manufacturing output, and 48.58% to exports.

3. MSMEs employ more than 38.9 crore people, making them the second-largest source of employment after agriculture.

4. Registrations under the Udyam Registration Portal and Udyam Assist Platform crossed 8.7 crore as of June 2026.

5. During 1 January to 30 November 2025, the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) approved 29.03 lakh credit guarantees worth ₹3.77 lakh crore.

6. The collateral-free credit guarantee limit under CGTMSE was enhanced from ₹5 crore to ₹10 crore.

7. Sales of Khadi and Village Industries crossed ₹1.27 lakh crore during 2025–26, while coir exports reached ₹6,614.40 crore.

8. As of June 2026, the MSME Samadhaan Portal received 2,56,892 applications involving claims worth ₹55,244.29 crore, with 58,148 cases disposed of.

9. The CHAMPIONS Portal resolved 39,387 out of 39,494 grievances during 2025–26, achieving a disposal rate of 99.72%.

10. Under PM Vishwakarma, the target of 30 lakh beneficiary registrations was achieved within just two years, with over 24 lakh beneficiaries completing basic skill training.

11. Under the Prime Minister’s Employment Generation Programme (PMEGP), more than 10.84 lakh micro-enterprises have been established, generating employment for over 97 lakh people.

12. As of May 2026, more than 93.61 lakh MSMEs were registered under the Zero Defect Zero Effect (ZED) certification framework, with over 6.68 lakh enterprises certified.

13. The Self-Reliant India (SRI) Fund has supported 761 MSMEs through equity investments worth ₹2,851 crore as of May 2026.

14. The Scheme of Fund for Regeneration of Traditional Industries (SFURTI) has approved 513 clusters, benefiting 3.03 lakh traditional artisans, with 376 clusters operational as of June 2026.

15. Under the Raising and Accelerating MSME Performance (RAMP) Scheme, all 36 States and Union Territories submitted Systematic Investment Plans (SIPs), leading to approval of 398 proposals worth ₹3,211.75 crore and benefiting more than 55 lakh MSMEs.

 

Must Know Terms :

 

1.Micro, Small and Medium Enterprises (MSMEs): MSMEs are a major pillar of India’s economy, contributing about 31.1% to Gross Domestic Product (GDP), 35.4% to manufacturing output, and 48.58% to exports as of January 2026.

 

2. Udyam Registration: Udyam Registration is the formal registration platform for MSMEs. Registrations under the Udyam Registration Portal and Udyam Assist Platform crossed 8.7 crore as of June 2026.

3. Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE): CGTMSE provides collateral-free credit support to MSMEs. During 1 January to 30 November 2025, it approved 29.03 lakh guarantees worth ₹3.77 lakh crore.

 

4. PM Vishwakarma: PM Vishwakarma supports artisans and craftspeople engaged in 18 traditional trades. Its target of 30 lakh beneficiary registrations was achieved within two years, and over 24 lakh beneficiaries completed basic skill training.

 

5. Prime Minister’s Employment Generation Programme (PMEGP): PMEGP is a credit-linked subsidy scheme for setting up micro-enterprises in the non-farm sector. It has supported over 10.84 lakh micro-enterprises and generated employment for more than 97 lakh people.

 

6. Raising and Accelerating MSME Performance (RAMP): RAMP is a World Bank-supported scheme to improve MSMEs’ access to markets, finance, and technology. It has approved 398 proposals worth ₹3,211.75 crore and impacted more than 55 lakh MSMEs.

 

 

MCQ :

 

 

1. With reference to the revised definition of Micro, Small and Medium Enterprises (MSMEs), consider the following statements:

1. The revised definition came into effect on 1 April 2025.
2. The classification is based on investment and annual turnover.
3. The revised definition applies only to manufacturing enterprises.

Which of the statements given above is/are correct?

A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3

2. As of January 2026, the contribution of the MSME sector to India’s Gross Domestic Product (GDP) is approximately:

A. 28.6%
B. 31.1%
C. 35.4%
D. 48.58%

3. With reference to the contribution of MSMEs, consider the following statements:

1. MSMEs contribute about 35.4% to India’s manufacturing output.
2. MSMEs account for nearly 48.58% of India’s exports.

Which of the statements given above is/are correct?

A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2

4. MSMEs are the second-largest source of employment in India after:

A. Manufacturing
B. Services
C. Agriculture
D. Construction

5. Registrations under the Udyam Registration Portal and Udyam Assist Platform crossed:

A. 5.7 crore
B. 6.8 crore
C. 7.5 crore
D. 8.7 crore

6. With reference to the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), consider the following statements:

1. It approved 29.03 lakh credit guarantees during 1 January–30 November 2025.
2. The value of these guarantees amounted to ₹3.77 lakh crore.
3. The collateral-free guarantee ceiling was enhanced from ₹5 crore to ₹10 crore.

How many of the above statements are correct?

A. Only one
B. Only two
C. All three
D. None

7. Sales of Khadi and Village Industries crossed:

A. ₹75,000 crore
B. ₹1 lakh crore
C. ₹1.27 lakh crore
D. ₹2 lakh crore

8. As of June 2026, the MSME Samadhaan Portal received applications involving claims worth:

A. ₹25,244.29 crore
B. ₹35,244.29 crore
C. ₹45,244.29 crore
D. ₹55,244.29 crore

9. The CHAMPIONS Portal achieved a grievance disposal rate of approximately:

A. 95.72%
B. 97.72%
C. 99.72%
D. 100%

10. With reference to PM Vishwakarma, consider the following statements:

1. It supports artisans and craftspeople engaged in 18 traditional trades.
2. The target of 30 lakh beneficiary registrations was achieved within two years.
3. More than 24 lakh beneficiaries completed basic skill training.

Which of the statements given above are correct?

A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3

11. Under the Prime Minister’s Employment Generation Programme (PMEGP), more than ______ micro-enterprises have been established.

A. 5.84 lakh
B. 8.84 lakh
C. 10.84 lakh
D. 12.84 lakh

12. With reference to the Zero Defect Zero Effect (ZED) certification framework, consider the following statements:

1. More than 93.61 lakh MSMEs were registered as of May 2026.
2. More than 6.68 lakh enterprises were certified.

Which of the statements given above is/are correct?

A. 1 only
B. 2 only
C. Both 1 and 2
D. Neither 1 nor 2

13. The Self-Reliant India (SRI) Fund has supported:

A. 513 MSMEs with ₹3,211.75 crore
B. 761 MSMEs with ₹2,851 crore
C. 398 MSMEs with ₹2,851 crore
D. 364 MSMEs with ₹3.77 lakh crore

14. Which of the following correctly describes the Scheme of Fund for Regeneration of Traditional Industries (SFURTI)?

A. It supports only Khadi institutions.
B. It has approved 513 clusters benefiting 3.03 lakh traditional artisans.
C. It provides direct crop insurance to artisans.
D. It is implemented only in North-Eastern states.

15. With reference to the Raising and Accelerating MSME Performance (RAMP) Scheme, consider the following statements:

1. It is supported by the World Bank.
2. All 36 States and Union Territories submitted Systematic Investment Plans (SIPs).
3. It has benefited more than 55 lakh MSMEs.

Which of the statements given above are correct?

A. 1 and 2 only
B. 2 and 3 only
C. 1 and 3 only
D. 1, 2 and 3