New Delhi, Mar 13 (KNN) Around 1.37 lakh micro, small and medium enterprises (MSMEs) have shut down since July 1, 2020, representing 0.17 percent of the total 7.83 crore MSMEs registered during the same period, the government informed the Lok Sabha.
Union Minister for MSME Jitan Ram Manjhi said the data is based on records available on the Udyam Registration Portal.
According to the minister, enterprises may deregister for several reasons such as change in ownership, duplicate registration, lack of requirement of the certificate, or closure of business operations.
The government also said the MSME sector contributed about 31 percent to India’s GDP in recent years. The share of MSME Gross Value Added (GVA) in the national GDP stood at 31.1 percent in 2021–22, 31.3 percent in 2022–23 and 31.1 percent in 2023–24, based on data from the Ministry of Statistics and Programme Implementation.
As of February 28, 2026, the 7.83 crore registered MSMEs collectively generated employment for around 34.5 crore people, the government added.
Government support measures
The government said it continues to support MSMEs through several schemes and policy initiatives, including the Prime Minister’s Employment Generation Programme (PMEGP), Credit Guarantee Scheme for Micro and Small Enterprises, Micro and Small Enterprises- Cluster Development Programme, Raising and Accelerating MSME Performance (RAMP), the Self Reliant India Fund, PM Vishwakarma, and the MSME Champions Scheme.
During the COVID-19 pandemic, the government also introduced the Emergency Credit Line Guarantee Scheme (ECLGS) with a Rs 5 lakh crore credit facility.
According to a research report by State Bank of India, the scheme helped save about 14.6 lakh MSME accounts, with over 98 percent belonging to micro and small enterprises.
To improve access to finance, banks have been directed not to seek collateral for loans up to Rs 10 lakh for micro and small enterprises, a limit that will be enhanced to Rs 20 lakh for new or renewed loans from April 1, 2026.
Initiatives for women entrepreneurs
To promote women entrepreneurship, the MSME Minister said that the government has undertaken initiatives such as special drives for registering women-owned MSMEs, and a mandate requiring central public sector enterprises and government departments to procure at least 3 percent of their purchases from women-owned micro and small enterprises.
Under the Credit Guarantee Scheme, women entrepreneurs receive up to 90 percent guarantee coverage compared with 75 percent for others, along with a 10 percent concession in annual guarantee fees.
Women beneficiaries also receive higher subsidy support of up to 35 percent under PMEGP, compared with 25 percent for other categories.
Other initiatives include the Skill Upgradation and Mahila Coir Yojana under the Coir Vikas Yojana, the PM Vishwakarma scheme for traditional artisans, and the Yashasvini awareness campaign to promote MSME schemes among women entrepreneurs.
According to a third-party evaluation study covering 28,200 units supported under PMEGP between 2008–09 and 2023–24, each assisted enterprise generated an average of nine jobs, contributing significantly to employment generation and income growth among beneficiaries.
(KNN Bureau)
