Economic Survey 2025-26: 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
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NEW DELHI — 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 INR 50,000 crore as equity funding for MSMEs, has assisted 682 MSMEs with investments totalling INR 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.
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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 INR 10,000 crore from the government and INR 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.