Indian Micro, Small, and Medium Enterprises (MSMEs) experienced a transformative yet challenging 2024. While progress was evident in job creation and formalization, the sector grappled with inflationary pressures, credit constraints, and structural disparities. Below are the key highlights reflecting the sector’s journey through the year.
1. Rising MSME Registrations
Formalization of MSMEs accelerated significantly in 2024. Registrations on the Udyam Portal surged to 5.77 crore enterprises by December 31, up from 3.20 crore in 2023. This growth underscores the sector’s increasing shift towards formal economic integration, facilitating access to benefits such as government incentives and credit schemes.
2. Export Growth and Contributions
MSMEs made remarkable strides in exports, contributing ₹12.39 lakh crore during April-November 2024, surpassing ₹8.55 lakh crore in the entirety of FY23. Additionally, the number of exporting MSMEs rose to 1.73 lakh, compared to 1.53 lakh in FY24 and 1.21 lakh in FY23. These figures highlight MSMEs’ growing presence in the global market, though challenges remain for smaller enterprises to compete effectively.
3. Significant Job Creation
The MSME sector emerged as a key driver of employment, adding approximately 9 crore jobs in 2024. This increased the workforce from 15 crore in 2023 to 24.3 crore in 2024. According to the National Sample Survey (2015-16), MSMEs across manufacturing, trade, and services generated 11.10 crore jobs, showcasing the sector’s critical role in addressing unemployment.
4. Persistent Challenges
Despite growth, inflationary pressures and restricted access to credit continued to hinder smaller enterprises. Uneven distribution of gains revealed structural disparities that remain unresolved.
