SDG 8: Decent Work and Economic Growth | SDG 9: Industry, Innovation, and Infrastructure | SDG 10: Reduced Inequalities
Ministry of Micro, Small & Medium Enterprises (MoMSME) | SIDBI
The Ministry of MSME’s Year End Review 2025 highlights a transformative period where the sector cemented its role as the backbone of the Indian economy, contributing significantly to manufacturing output and exports. The year was marked by the saturation of digital formalization via the Udyam Portal, which has now registered over 5.5 crore MSMEs, including a massive surge in women-led and micro-enterprises from aspirational districts.
Key operational and developmental highlights include:
Credit Guarantee Scaling: The CGTMSE scheme reached a historic milestone by providing over ₹1.5 lakh crore in guarantee approvals in a single year, significantly easing collateral-free credit flow to first-generation entrepreneurs.
PM Vishwakarma Impact: The flagship PM Vishwakarma Scheme successfully onboarded and provided ‘Toolkit Grants’ and credit support to over 20 lakh artisans across 18 traditional trades, integrating them into modern value chains.
Export Competitiveness: Through the ZED (Zero Defect Zero Effect) certification, more than 1 lakh MSMEs were certified for quality and environmental standards, boosting their acceptance in global supply chains.
Infrastructure & Clusters: Under the MSE-CDP (Cluster Development Programme), 45 new Common Facility Centres (CFCs) were inaugurated, providing small units with access to high-end testing labs and green technology.
Khadi’s Global Leap: KVIC reported a record turnover exceeding ₹1.6 lakh crore, driven by aggressive branding and the expansion of Khadi institutions into international fashion markets.
What is the Udyam Assist Platform (UAP)? It is an extension of the Udyam registration system designed specifically to bring “Informal Micro Enterprises” (IMEs) into the formal economic fold. By allowing banks and financial institutions to share basic data of informal units, the UAP generates a formal registration certificate, making these micro-units eligible for Priority Sector Lending (PSL) and government benefits without the immediate burden of complex regulatory filings.
Policy Relevance & Future Roadmap
The 2025 review underscores a shift from “survival-linked” support to “growth-linked” institutional frameworks. By linking the Udyam portal with the TReDS (Trade Receivables Discounting System), the Ministry is systematically addressing the perennial challenge of delayed payments, which is critical for the liquidity of small units.
Future Roadmap (2026-2030):
MSME 6G Integration: The Ministry plans to launch a dedicated “Smart Manufacturing” fund to help units adopt IoT and 5G/6G-ready technologies for real-time inventory and supply chain tracking.
Green MSME Transition: A targeted “Carbon Credit Framework for MSMEs” is being developed to incentivize units adopting renewable energy and circular waste management systems.
E-Commerce Saturation: Plans are underway to onboard 1 crore additional MSMEs onto the Open Network for Digital Commerce (ONDC) to bypass platform-centric monopolies and reach global consumers directly.
Relevant Question for Policy Stakeholders: How can the Ministry of MSME and SIDBI collaborate to refine ‘Risk-Based Credit Rating’ models for micro-enterprises, ensuring that the transition to ‘Expected Credit Loss’ (ECL) frameworks does not inadvertently lead to credit exclusion for high-performing informal units?
Follow the full news here: Ministry of MSMEs Year End Review 2025