Sansad TV

Perspective: MSMEs: Driving India’s Economy | 15 May, 2026

Sansad Tv

On the show today, we’re focusing on a sector that forms the backbone of India’s economy — the Micro, Small and Medium Enterprises, or MSMEs. MSMEs contribute more than 31 percent to the country’s GDP, account for nearly 49 percent of India’s exports, and generate over one-third of the nation’s manufacturing output. Spread across manufacturing, services and trade, the sector today comprises more than 7.4 crore enterprises and supports the livelihoods of nearly 33 crore people — making it the second-largest source of employment after agriculture. What makes this sector even more significant is its deep presence in rural and semi-urban India. These enterprises are driving local entrepreneurship, creating non-farm employment opportunities, strengthening local supply chains, and contributing to balanced regional development. Recognising their growing importance, the government has intensified efforts to strengthen and formalise the MSME ecosystem. Digital platforms such as Udyam and Udyam Assist have brought crores of informal enterprises into the formal economy, enabling better access to institutional credit, government schemes and market opportunities. At the same time, initiatives like GeM, TReDS and SAMADHAAN are improving market linkages, ensuring faster payments, and enhancing ease of doing business for small entrepreneurs. Policy reforms aimed at expanding credit access and strengthening legal safeguards are also helping MSMEs become more resilient and competitive. So, how are these initiatives transforming the grassroots economy? Are rural and semi-urban MSMEs truly becoming engines of inclusive growth? And what more needs to be done to unlock their full potential?

Guests: