Ministry
Ministry of Micro, Small and Medium Enterprises
The Ministry of Micro, Small and Medium Enterprises is the Union government's apex body for the policy, promotion and regulation of India's micro, small and medium enterprises. It administers the MSMED Act, 2006, runs the Udyam registration system that defines who counts as an MSME, and channels the credit-guarantee, cluster, khadi and artisan schemes through which the state supports a sector it counts as roughly 30 percent of GDP and the country's largest employer after agriculture.
Updated
- Formed
- 9 May 2007 (merger of the Ministries of Small Scale Industries and of Agro and Rural Industries)
- Governing law
- MSMED Act, 2006 (in force 2 October 2006)
- Registrations
- 6.52 crore enterprises on Udyam + Udyam Assist (as of mid-2025, per the MSME Minister)
- Economic weight
- ~30.1% of GDP, 35.4% of manufacturing, 45.73% of exports (Union MSME Ministry, 2025)
- Revised classification
- Effective 1 April 2025: Micro <=Rs 2.5cr / Rs 10cr; Small <=Rs 25cr / Rs 100cr; Medium <=Rs 125cr / Rs 500cr (investment / turnover)
- Attached bodies
- DC-MSME, KVIC, Coir Board, NSIC, MGIRI, NIMSME
Role
The Ministry of Micro, Small and Medium Enterprises is the Union government’s apex body for the promotion, development and regulation of India’s MSME sector. It administers the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, the statute that first fixed a legal definition of a “medium enterprise” and set the 45-day rule on payments owed to small suppliers. Formed on 9 May 2007 by merging the Ministry of Small Scale Industries with the Ministry of Agro and Rural Industries, it inherited a lineage of post-independence small-industry policy and today sits alongside the Ministry of Finance and the Reserve Bank of India as one of the offices that decides how credit and support reach the country’s smallest firms. Its most consequential instrument is definitional: through the Udyam registration system it controls who counts as an MSME, and therefore who is eligible for the priority-sector lending, guarantees and procurement set-asides that flow to the sector.
The Ministry works largely through attached and subordinate bodies rather than directly: the Office of the Development Commissioner (DC-MSME) for cluster development and technology; the Khadi and Village Industries Commission (KVIC) and the Coir Board for traditional rural industry; and the National Small Industries Corporation (NSIC) for marketing and finance facilitation. It runs employment and artisan schemes such as PMEGP and PM Vishwakarma, and the delayed-payment redress mechanism MSME Samadhaan. Credit-guarantee support flows through CGTMSE, a trust it operates jointly with financial institutions and which is shaped by Ministry of Finance budget decisions. Its economic remit is large relative to its budget: the Ministry counts the sector at roughly 30 percent of GDP and nearly half of exports, making it a policy seat whose leverage comes from definitions and guarantees more than from direct spending.
Desk maintained by IndiaStand editorial cycles. Officeholders are transient; this dossier tracks the institution.
Timeline since 1947
- reference
Ministry of Small Scale Industries and Agro and Rural Industries created
Small-scale, agro and rural industry portfolios are brought under a single Union ministry, later split (2001) and re-merged.
- reference
MSMED Act, 2006 comes into force
The Act creates the statutory 'medium enterprise' category, an investment-based classification, and the 45-day delayed-payment framework.
- reference
Ministry of Micro, Small and Medium Enterprises formed
The Ministries of Small Scale Industries and of Agro and Rural Industries are merged into a single apex ministry for the sector.
- reference
Composite classification and Udyam registration launched
Notification S.O. 2119(E) replaces the investment-only test with a composite investment-and-turnover criterion; the online Udyam portal replaces earlier registration systems.
- official
RAMP programme launched
The World Bank-supported 'Raising and Accelerating MSME Performance' scheme, outlay Rs 6,062.45 crore (USD 808 million), begins its 2022-23 to 2026-27 run.
- reference
Udyam Assist Platform opened for informal micro units
Informal micro enterprises below the GST threshold are onboarded to a formalisation track, counted alongside Udyam registrations.
- official
Union Budget 2025-26 announces classification and credit changes
The Budget raises MSME investment and turnover limits (2.5x and 2x), doubles the credit-guarantee cover for micro and small enterprises to Rs 10 crore, and announces a Rs 5 lakh customised credit card for micro units.
- official
Revised MSME classification takes effect
Notification S.O. 1364(E) (21 March 2025) makes the higher investment and turnover thresholds operative from FY 2025-26.
Frequently asked
- What is Ministry of Micro, Small and Medium Enterprises?
- The Ministry of Micro, Small and Medium Enterprises is the Union government's apex body for the policy, promotion and regulation of India's micro, small and medium enterprises. It administers the MSMED Act, 2006, runs the Udyam registration system that defines who counts as an MSME, and channels the credit-guarantee, cluster, khadi and artisan schemes through which the state supports a sector it counts as roughly 30 percent of GDP and the country's largest employer after agriculture.
- When was Ministry of Micro, Small and Medium Enterprises established?
- Ministry of Micro, Small and Medium Enterprises was established 2007-05-09.
- What does Ministry of Micro, Small and Medium Enterprises do?
- Its remit covers Administering the Micro, Small and Medium Enterprises Development (MSMED) Act, 2006, Operating the Udyam Registration portal and Udyam Assist Platform (enterprise classification and formalisation), Credit facilitation: the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), Khadi, village and coir industries via KVIC and the Coir Board, Cluster development, technology upgradation and marketing support via the Office of the Development Commissioner (DC-MSME) and NSIC, Delayed-payment redress under the MSMED Act via the MSME Samadhaan mechanism, Skilling and employment schemes including PMEGP and PM Vishwakarma.
- What is the latest on Ministry of Micro, Small and Medium Enterprises?
- As of 2026-07-06: Revised MSME classification takes effect. Notification S.O. 1364(E) (21 March 2025) makes the higher investment and turnover thresholds operative from FY 2025-26.