From small towns to global impact: India’s MSMEs are powering the next wave of entrepreneurship

India’s MSME sector is one of the strongest pillars of the country’s economy, contributing nearly 30% to India’s GDP, close to 45% of exports, and employing over 250 million people across manufacturing, services, trade, and agriculture-linked industries.

Spread across urban centres, emerging towns, and rural India, MSMEs are not only driving economic growth but also creating livelihoods, enabling innovation, and accelerating grassroots entrepreneurship.

From women-led enterprises and digital-first startups to traditional family-run businesses and rural innovators, India’s MSMEs today represent the evolving face of entrepreneurship: resilient, adaptive, and deeply impact-driven.

Recognizing and celebrating these stories is Tally MSME Honours 2026, an initiative by Tally Solutions, India’s leading business management software provider. Since its inception in 2021, the platform has evolved into one of the largest global initiatives celebrating small and medium businesses that are driving meaningful economic and social impact.

Over the last five editions, Tally MSME Honours has received over 70,000 nominations and recognized more than 800 MSMEs across seven countries. More than 20% of the entries have come from women-led businesses, reflecting the growing role of women entrepreneurs in shaping local economies and driving inclusive growth.

This year, Tally expects over 20,000 nominations from India and international markets including the Middle East, Africa, Bangladesh, and Nepal. The winners will be felicitated on International MSME Day, June 27, 2026.

Nominations for Tally MSME Honours 2026 are now open, inviting business owners as well as individuals to nominate deserving MSMEs before June 15, 2026 This year, the platform will recognize outstanding businesses across five categories:

• Wonder Woman: Outstanding women-led businesses making a remarkable impact.
• Business Maestro: Established businesses that have mastered the art of thriving and sustaining success.
• NewGen Icon: A new generation of business owners innovating and paving the way for exponential growth.
• Tech Transformer: Businesses leveraging new technology to drive efficiency and scale.
• Champion of Cause: Purpose-driven businesses contributing meaningfully to society and the environment.

The initiative celebrates entrepreneurs who are not just building successful businesses, but creating impact through innovation, sustainability, digital transformation, and community-led growth.

This year’s edition also introduces video entries in native languages, enabling wider participation from entrepreneurs across Tier II, Tier III, and smaller towns, a core focus area for the initiative since its inception.

Tally is additionally deploying an AI-led shortlisting framework to help assess entries more comprehensively by analysing publicly available business information and identifying deserving businesses with greater accuracy.

As India’s MSME ecosystem continues to play a pivotal role in employment generation, exports, digitization, and local economic development, platforms like Tally MSME Honours are helping bring visibility to stories that often remain unheard beyond regional markets.

Here’s a look at some of the inspiring stories of past winners who are transforming industries:

• Among the many inspiring entrepreneurs recognised through the platform is Nandini Bhattacharyya, Founder of APN Industries from West Bengal, and winner in the Wonder Woman category. Challenging traditional expectations and gender stereotypes, Nandini entered the heavy industrial manufacturing sector by establishing a wire nail manufacturing business, a field rarely associated with women entrepreneurs in smaller towns.

Despite facing skepticism from financial institutions and societal bias, she built APN Industries into a trusted manufacturing brand focused on quality and reliability. The business later expanded into manufacturing wire nail-making machines, transforming the enterprise from a local production unit into a nationally recognized industrial MSME.

Beyond business growth, Nandini has also contributed meaningfully toward women and girl child empowerment through social initiatives focused on education, menstrual hygiene awareness, and cyber safety for girls in rural communities. Her journey reflects the growing emergence of women-led manufacturing businesses redefining India’s industrial landscape.

• Another inspiring story is that of Shravan Kumar Roy, Founder of FT-MBA Makhana Wala, and winner of the NewGen Icon category, who transformed Bihar’s traditional makhana crop into a modern superfood brand. Combining food technology, innovation, and grassroots entrepreneurship, Shravan built a business that connects local farming communities with evolving consumer demand for healthy and sustainable food products.

What makes the venture particularly distinctive is its focus on value addition and farmer welfare. The company developed innovative food products using smaller-sized makhana, which traditionally had very low market demand, helping reduce wastage while improving farmer income opportunities.

Today, FT-MBA Makhana Wala represents a larger movement emerging across India, where traditional agricultural products, rural entrepreneurship, and modern branding are coming together to create globally relevant businesses. The enterprise has also contributed to employment generation, women’s participation, and awareness around healthier food choices.

These stories represent the broader transformation taking place within India’s MSME ecosystem, where entrepreneurs are building businesses rooted not only in ambition, but also in purpose and impact.

As India continues its journey towards becoming a global innovation and entrepreneurship powerhouse, the role of MSMEs has never been more significant. They are creating jobs in emerging towns, driving digital adoption, preserving traditional industries while modernizing them, and building businesses rooted in both ambition and impact.

Through initiatives like Tally MSME Honours, these stories are not only being celebrated but amplified, inspiring thousands of entrepreneurs across the country to dream bigger, build stronger, and grow with purpose.