MSME exports nearly quadruple in 5 years to Rs12.39 lakh crore

Exports from micro, small, and medium enterprises (MSMEs) in India nearly quadrupled to Rs12.39 lakh crore in 2024-25 from Rs3.95 lakh crore in 2020-21, which underscores their critical role in India’s economy.

During the period, the number of exporting MSMEs in the country also increased from 52,849 to 1,73,350 in 2024-25. 

The share of MSMEs in India’s overall exports also witnessed a steady growth from 45.73 per cent of the country’ total exports in 2023-24 to 45.79 per cent by May 2024, highlighting their growing impact on India’s trade performance.

Gross value added (GVA) by MSMEs in India’s GDP increased from 29.7 per cent in 2017-18 to 30.1 per cent in 2022-23. 

In spite of the challenges posed by the Covid-19 pandemic, the sector’s contribution to the economy rose from 27.3 per cent in 2020-21 to 29.6 per cent in 2021-22. 

Also, the MSME sector witnessed a steady scaling up of small industries to medium scale and micro industries to small industries, reflecting their strength and their contribution to the economy.

As per the revised classification effective 1 July 2020, micro enterprise include such units where investment in plant and machinery does not exceed Rs1 crore and annual turnover is not more than Rs5 crore.

Small enterprise are those with maximum Rs10 crore fixed capital investment and maximum annual turnover of Rs50 crore.

Medium enterprise include those with maximum fixed capital investment of Rs50 crore and maximum annual turnover of Rs250 crore.

Between financial years 2020-21 and 2021-22, 714 micro enterprises matured to medium enterprises while 3,701 small enterprises upgraded themselves to medium enterprises. The numbers have further increased to 2,372 and 17,745, respectively over the financial years 2023-24 and 2024-25.