The Year 2024: A Transformational Year for MSMEs in India

The Ministry of Micro, Small, and Medium Enterprises (MSME), Government of India, has concluded a groundbreaking year in 2024, marked by significant achievements, innovative initiatives, and strategic collaborations. With over 6.3 crore enterprises, the MSME sector continues to play a vital role in the Indian economy, second only to agriculture in terms of employment generation. This year’s initiatives have further enhanced the sector’s dynamism, inclusivity, and competitiveness.

Key Highlights of 2024

1. PM Vishwakarma Scheme: Empowering Traditional Artisans
The PM Vishwakarma Scheme, launched in September 2023, saw exceptional progress in 2024. Aimed at supporting artisans from 18 traditional trades, the scheme facilitated:

24.77 lakh registrations in 2024.
15.05 lakh artisans received skill training.
Collateral-free loans worth ₹2,197.72 crore were disbursed to 2.54 lakh artisans.
Digital enablement of 6.58 lakh artisans and participation in 75 trade fairs boosted market visibility.

A national event on the scheme’s first anniversary in Wardha showcased the transformative impact on artisans, enabling them to scale their businesses and upgrade their tools.

2. Formalization of MSMEs: Scaling New Heights
The Udyam Registration Portal and Udyam Assist Platform (UAP) now host 5.70 crore registered MSMEs, employing 24.14 crore people. A special registration drive by the Ministry yielded significant growth, streamlining the formalization process for small enterprises and ensuring better access to credit and government support.

3. Credit Guarantee Scheme: A Financial Lifeline
The revamped Credit Guarantee Scheme for Micro and Small Enterprises has become a flagship initiative, enabling collateral-free loans:

19.90 lakh guarantees worth ₹2.44 lakh crore were approved in 2024.
Women entrepreneurs received a 90% guarantee coverage, compared to 75% for others, underscoring the focus on gender parity.
A special scheme for informal micro enterprises under UAP offered ₹20 lakh loans with 85% coverage, empowering GST-exempt entities.

4. Enhancing Digital Commerce: MSME-TEAM Scheme
The MSME-TEAM initiative, with a budget of ₹277.35 crore, empowered 5 lakh MSMEs, including 2.5 lakh women-led enterprises, to embrace e-commerce. This program aids enterprises in cataloging, account management, logistics, and packaging, enhancing their digital market access.

5. Gender Inclusivity: Yashasvini Campaign
Launched in collaboration with NITI Aayog and the Ministry of Rural Development, the Yashasvini Campaign focused on mentoring, formalizing, and digitizing women-owned MSMEs. It is a major step toward achieving gender parity in the MSME ecosystem by 2029.

6. Innovation and Technology Advancement
The MSME Hackathon 4.0, launched in September, supported 500 young entrepreneurs with financial assistance of up to ₹15 lakh each, fostering innovation.
Additionally, the Centre for Rural Enterprise Acceleration through Technology (CREATE) in Leh became operational, promoting value-added local products like Pashmina wool and essential oils.

7. International Collaborations
This year saw strengthened global partnerships, including:

An MoU with the United States Small Business Administration (US-SBA) to enhance bilateral SME cooperation.
Agreements with Tajikistan and Egypt for promoting MSME collaboration and trade.

Focus on Khadi, Village Industries, and Coir Sector

The Khadi and Village Industries sector saw phenomenal growth with sales rising over fourfold in the last decade, reaching ₹1,55,673.13 crore in FY 2023-24. Similarly, the coir sector recorded exports worth ₹2,895.63 crore and trained 4,339 individuals in skill development programs.

Sustainability and Technology-Driven Growth

The ZED Certification (MSME-Sustainable) initiative certified 1,64,525 enterprises in 2024, promoting energy efficiency and sustainability. Meanwhile, Technology Centres and Extension Centres assisted over 45,000 units and trained 72,414 individuals, advancing industrial readiness and self-reliance under Atmanirbhar Bharat.

Skilling and Entrepreneurship Development

Through 2,792 programs, 1.40 lakh individuals were trained under the Entrepreneurship Skill Development Programme (ESDP) in 2024. These efforts are bolstered by the National SC-ST Hub (NSSH) and the Promotion of MSMEs in NER and Sikkim Scheme, which focus on marginalized communities and regional inclusivity.

Green MSMEs and Public Procurement

The MSME Pavilion at the India International Trade Fair 2024 spotlighted Green MSMEs, showcasing eco-friendly products from 200 exhibitors across 29 states. The Public Procurement Policy ensured 38.39% procurement from MSMEs, benefiting over 1.15 lakh enterprises.

Moving Forward

The year 2024 has solidified the MSME sector’s role as a driver of inclusive growth, sustainability, and innovation. With strategic reforms, technological adoption, and global collaborations, the Ministry of MSME has paved the way for the sector to thrive in a competitive global economy.

As the sector looks ahead to 2025, the focus remains on creating an enabling environment where small enterprises can flourish, contributing to India’s vision of becoming a $5 trillion economy.

Note: Based on Data from MSME Ministry and a releases from PIB and MSME Ministry.