The Parliamentary Standing Committee on Industry, chaired by Tiruchi Siva, met in New Delhi on Wednesday to discuss strengthening support for traditional and labour-intensive Micro, Small and Medium Enterprises (MSMEs).
DMK Rajya Sabha MP Tiruchi Siva underlined the crucial role of MSMEs in advancing India’s exports and employment generation during a high-level meeting with ministry officials. He stated, “The members gave their views and suggestions. We see a substantial improvement in the working of the MSMEs. MSMEs contribute to the generation of employment and have a contribution of 48.5 per cent to the exports. We are taking up different subjects.”
Siva further highlighted the recent trade agreements made by India and their effects on the manufacturing and export sectors, adding, “We are assessing their impact as well.”
The government reports that MSMEs contribute approximately 31.1 per cent to India’s GDP, account for 48.58 per cent of total exports, and produce around 35.4 per cent of manufacturing output. The sector includes more than 7.47 crore enterprises across manufacturing, services, and trade activities and provides livelihoods to about 32.8 crore people, making it the second-largest employment source after agriculture.
A significant portion of MSMEs operate in rural and semi-urban areas, supporting local value chains, encouraging non-farm employment, and contributing to regional economic development. Strengthening MSMEs in these areas is essential to promote inclusive growth, enhance productivity, and integrate small enterprises into national and global supply chains.
Many MSMEs currently function as unregistered and informal entities. Formalizing these enterprises is necessary to enable access to credit and other sectoral support. Recent years have seen acceleration in formalization through digital registration platforms.
By March 2026, over 7.9 crore MSMEs and informal micro enterprises had registered via the Udyam and Udyam Assist Platforms, indicating the expanding reach of institutional support for small businesses.
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