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MSMEs Drive 48.58% of India's Exports, Employ 32.8 Crore: Economic Survey

The Economic Survey 2025-26 highlights that Micro, Small and Medium Enterprises (MSMEs) are fundamental to India's economy, accounting for about 35.4% of manufacturing and nearly half of the country's exports. The sector, comprising over 7.47 crore enterprises, is the second-largest employer after agriculture. Government initiatives like the Self-Reliant India (SRI) Fund have provided significant equity funding, while MSME credit growth has strongly outperformed lending to large industries. The survey underscores the sector's critical role in global supply chain integration and regional inclusive growth.

Key Points: MSMEs Account for Nearly Half of India's Exports, Says Survey

  • 48.58% of exports from MSMEs
  • Employs over 32.8 crore people
  • SRI Fund invested Rs 15,442 crore
  • MSME credit growth outpaces large industries
  • SME public markets expand dramatically
2 min read

MSMEs account for nearly half of India's exports: Economic Survey

Economic Survey reveals MSMEs form India's industrial backbone, contributing 48.58% to exports and employing over 32.8 crore people. Key growth drivers highlighted.

"With India's manufacturing sector positioned for greater global integration, MSME sector's role is critical - Economic Survey"

New Delhi, Jan 29

Micro, Small and Medium Enterprises form the backbone of India's industrial economy, accounting for approximately 35.4 per cent of manufacturing, around 48.58 per cent of exports and 31.1 per cent of GDP, the government said on Thursday in Economic Survey 2025-26.

Self‑Reliant India (SRI) Fund, launched to infuse Rs 50,000 crore as equity funding for MSMEs, has assisted 682 MSMEs with investments totalling Rs 15,442 crore as of November 30, 2025, according to the official statement.

India's MSME sector comprises over 7.47 crore enterprises employing over 32.82 crore persons, making it the second‑largest employer after agriculture, the statement said.

The Finance Ministry in the Economic Survey highlighted that MSME credit has maintained a positive trajectory recently, bolstered by several government interventions aimed at enhancing credit flow to the sector.

The MSME lending was the primary driver of industrial credit growth in H1FY26 and year‑on‑year MSME credit growth significantly outpacing that for large industries, the statement said.

Further, SME public markets have also witnessed a dramatic expansion over the past two years, driven by buoyant market conditions and digital retail participation, according to the survey.

SRI fund launched to help MSMEs includes Rs 10,000 crore from the government and Rs 40,000 crore via private equity and venture capital funds, the statement added. The Fund aims to provide capital support to the Daughter Funds for onward provision to MSMEs as growth capital, through equity, quasi-equity and debt.

Globally, MSMEs make up about 90 per cent of businesses and are responsible for over 50 per cent of the total global employment, the Survey said.

"With India's manufacturing sector positioned for greater global integration, MSME sector's role is critical in enabling effective supply-chain participation, fostering local value addition, and supporting inclusive regional growth," it added.

Innovation is also being institutionalised through the MSME-Innovative component, which facilitates incubation, design interventions, and the protection of IPR, the statement said.

India accounted for an estimated 2.9 per cent of the global manufacturing GVA and 1.8 per cent of global merchandise exports in 2024, indicating considerable potential for expanding its global manufacturing footprint.

- IANS

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Reader Comments

R
Rajesh Q
Nearly half of our exports! That's a powerful statistic. It shows the 'Make in India' push is working at the grassroots. We need to support our local businesses more than ever. Hope the benefits of these funds reach the smallest units in tier-2 and tier-3 cities.
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Aman W
The numbers are impressive, but the real challenge is on the ground. As someone who tried to start a small tech firm, the paperwork and compliance are still a nightmare. The fund is great, but simplifying processes is equally important for true growth.
S
Sarah B
The focus on innovation and IPR protection for MSMEs is crucial. For India to move up the global value chain, our small businesses need to create, not just manufacture. This is a positive long-term vision.
V
Vikram M
Employing over 32 crore people... that's staggering. It means the stability of crores of families is tied to this sector. The government must ensure policies are consistent and supportive. Jai Hind!
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Kriti O
Good to see the data. But Rs 15,442 crore invested in 682 MSMEs from a Rs 50,000 crore fund? The rollout seems slow. We need faster deployment to truly unlock potential, especially for women-led enterprises.

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