MSME Sparks 2026 puts India’s growth engines in the spotlight

India’s Micro, Small and Medium Enterprises (MSME) sector may not always be in the spotlight, but its contribution to the country’s economy cannot be overlooked. 

The sector comprises nearly 7.47 crore enterprises and employs more than 32.82 crore people, making it India’s second largest source of employment after agriculture. MSMEs contribute around 31.1% of the country’s GDP, account for nearly 35.4% of manufacturing output, and generate approximately 48.58% of India's exports. 

The pace of formalisation has accelerated in recent years. 

According to a SIDBI report, more than 6.2 crore MSMEs had registered on the Udyam portal by March 2025, up from 2.5 crore just in 2024. Exports from the sector have also surged, increasing from Rs 3.95 lakh crore in FY21 to Rs 12.39 lakh crore in FY25.

Policy support has followed. The MSME Ministry received a budget allocation of Rs 23,168 crore in FY26, representing a 4.6% increase over the previous year. The sector is also becoming more diverse, with women-owned enterprises now accounting for 20.5% of all Udyam registrations. 

Yet challenges remain.

Access to formal credit continues to be a concern, particularly for smaller businesses. According to a report by the Ministry of MSME, 12% of micro enterprises still rely on informal borrowing channels. Despite the growth in registrations, around 35% of enterprises remain outside the formal system. 

Technological adoption is another area where progress remains uneven. As per the MSME Growth Insights Study 2025, India’s Digital Maturity Index (DMI), a framework used to assess how effectively organizations leverage technology and data, stands at 58.0 in 2025, an increment of 1.4 from 2023. At the same time, the country leads the Asia-Pacific region in digital payments, with 89% of businesses generating more than 10% of their revenue through digital transactions. 

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Focus on India’s MSMEs

Against this backdrop, YourStory's MSME Sparks returns from June 22–26, 2026.

One of YourStory's longest-running initiatives, MSME Sparks aims to spotlight the opportunities and challenges that India's small businesses face, while creating a platform for learning, collaboration, and growth.

The five-day event will bring together MSMEs, SaaS companies, digital solution providers, policymakers, investors, and business leaders to discuss how technology, finance, and innovation can help businesses scale and expand into new markets. 

The first four days will be held virtually and will focus on themes like Digital Transformation, Policy and Global Expansion, Financing and Funding, and Sustainability and Make in India. 

The event will culminate in an in-person half-day finale on June 26. The gathering is expected to bring together more than 600 stakeholders from governmental bodies, industries, startups, investors, and the wider MSME ecosystem. 

As the sector continues to grow in size and importance, many entrepreneurs still face challenges navigating policy changes, funding opportunities, technology adoption, and market access.

MSME Sparks aims to address some of these gaps by bringing key stakeholders on to a common platform and facilitating conversations that can translate into practical insights for business owners.

Registrations for MSME Sparks 2026 are now open. Sign up here.