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Micro-, Small and Medium-sized Enterprises (MSME) Day – June 27

Every year on June 27, the world observes MSME Day to recognize the immense contribution of Micro-, Small, and Medium-sized Enterprises (MSMEs) to economic development, job creation, innovation, and sustainability. Declared by the United Nations in 2017, the day is an opportunity to highlight the critical role these enterprises play globally, particularly in developing economies, where they serve as the backbone of local growth and entrepreneurship.

Theme for 2025

  • The theme for MSME Day 2025 is: “Enhancing the role of MSMEs as drivers of Sustainable Growth and Innovation.”
  • This theme aligns with the broader goals of global recovery, digital transformation, and environmental sustainability.
  • It is especially timely, as the world prepares for two major international gatherings: the Fourth International Conference on Financing for Development (FfD4) in Sevilla and the Second World Summit for Social Development in Doha.
  • These platforms aim to strengthen the enabling environment for MSMEs amid rising geopolitical and climate challenges.

Importance of MSMEs

  • MSMEs are crucial for inclusive and sustainable economic growth. They,
  • Represent 90% of all businesses worldwide.
  • Account for 60–70% of employment globally.
  • Contribute about 50% to global GDP.
  • In emerging markets, 7 out of 10 formal jobs are generated by MSMEs.
  • In India alone, over 6.5 crore registered MSMEs contribute 31% of GDP, 45% of exports, and employ over 28 crore people.
  • MSMEs also empower women, youth, and marginalized groups, and operate across diverse sectors—from khadi to Chandrayaan, and retail to aerospace components—showcasing India’s industrial spectrum.

Challenges Faced by MSMEs

Despite their significance, MSMEs face persistent hurdles,

  • Lack of access to formal credit and finance.
  • Poor infrastructure and high operating costs.
  • Policy fragmentation and limited market linkages.
  • Many MSMEs operate informally, restricting access to government benefits and legal protections.
  • The impact of climate change, digital divide, and supply chain disruptions continues to strain their resilience.
  • Moreover, low awareness about sustainability practices and limited access to digital tools further inhibit growth and competitiveness.

MSMEs in India: A Strong and Evolving Sector

  • India’s MSME ecosystem is dynamic and evolving rapidly
  • As of April 2025, the revised MSME classification now includes enterprises with,
  • Investment up to Rs 125 crore.
  • Turnover up to Rs 500 crore.
  • India has shown remarkable progress in formalizing informal micro-enterprises. Over 6.5 crore enterprises are now registered on the Udyam Portal and Udyam Assist Platform.
  • According to ASUSE (Jan 2025), there are 7.34 crore non-agricultural unincorporated MSMEs in India.
  • Formalization brings key benefits like identity, access to priority sector lending, and eligibility for government schemes.

Key Government Initiatives

To support MSMEs, India has implemented several policies and reforms

  • Credit Guarantee Scheme: Between 2023–2025, over 44.39 lakh guarantees worth Rs 5.08 lakh crore were issued.
  • Mandatory procurement by CPSEs (Central Public Sector Enterprises): Grew from Rs 74,828 crore (2023-24) to Rs 93,697 crore (2024-25).

Digital Adoption: According to SIDBI’s May 2025 survey

  • 90% of MSMEs use digital payments.
  • 18% benefited from digital lending.
  • One-third adopted sustainable practices, though awareness remains a challenge.

Awards and Recognition

To inspire entrepreneurship, the National MSME Awards are presented to,

  • Recognize exemplary MSME enterprises.
  • Encourage emerging entrepreneurs and innovation-driven businesses.
  • Motivate risk-takers and visionaries in the startup and traditional sectors alike.

Way Forward: Strengthening MSMEs for a Sustainable Future

MSME Day is more than just a celebration—it is a call to action. Going forward, key focus areas should include,

  • Ensuring affordable and inclusive finance.
  • Promoting green technologies and sustainable practices.
  • Enhancing digital public infrastructure and e-market access.
  • Encouraging industry-academia collaboration for innovation and skills.
  • Improving the ease of doing business for micro and small enterprises.
  • These steps will help cement MSMEs as catalysts of Viksit Bharat (Developed India) and central players in achieving the UN’s Sustainable Development Goals (SDGs).
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