Indian MSMEs employ 32.82 Cr people, contribute 31% to GDP: Economic Survey

Micro, small, and medium enterprises (MSMEs) continue to form the backbone of India's industrial economy, accounting for 35.4% of manufacturing, 48.58% of exports, and 31.1% of GDP, according to the Economic Survey 2025-26 tabled in Parliament by Finance Minister Nirmala Sitharaman on Thursday.

The sector employs over 32.82 crore people across 7.47 crore enterprises, making it the second-largest employer after agriculture.

The survey emphasised that "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."

MSME credit emerged as the primary driver of industrial credit growth during H1 FY26, with year-on-year growth significantly outpacing large industry credit expansion.

The government's Self-Reliant India (SRI) Fund has invested Rs 15,442 crore across 682 MSMEs, as of November 30, 2025, from its total allocation of Rs 50,000 crore.

The survey noted that India currently represents 2.9% of global manufacturing gross value added (GVA) and 1.8% of merchandise exports, indicating substantial room for growth.

"For India, a calibrated deepening of participation in global supply chains, particularly in labour-intensive and assembly-linked sectors, represents a potential avenue for advancing job-rich industrialisation within the broader Viksit Bharat@2047 growth trajectory," the survey stated.

The document emphasised that focusing on advanced manufacturing, R&D-intensive innovation, and comprehensive ecosystem development will enhance India's competitiveness in global markets while supporting the Viksit Bharat@2047 vision.

(With inputs from PIB)