Skip to content
IndiaStand

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
7.30 crore enterprises on Udyam (4.37 crore) + Udyam Assist (2.92 crore), 1 July 2020 to 17 December 2025 (PIB)
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)
2026 amendment
MSMED (Amendment) Bill, 2026 passed by Parliament (RS 3 Aug, LS 7 Aug 2026): thresholds to be set by notification; TReDS settlement mandatory for CPSEs
Attached bodies
DC-MSME, KVIC, Coir Board, NSIC, MGIRI, NIMSME
Coverage since 199923 recorded events ·100% from official & primary sources
1995–1999: 1 event20002005–2009: 3 events2010–2014: 2 events20102015–2019: 1 event2020–2024: 10 events20202025–2026: 6 events

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

  1. 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.

    source 1

  2. 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.

    source 1

  3. 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.

    source 1

  4. official

    Prime Minister's Employment Generation Programme (PMEGP) begins

    The Ministry's flagship credit-linked subsidy scheme for non-farm micro-enterprises starts in FY 2008-09, providing margin-money subsidy against bank loans of up to Rs 50 lakh (manufacturing) and Rs 20 lakh (services). By 16 December 2025 it had assisted more than 10.71 lakh micro enterprises with Rs 29,249.43 crore of margin money and an estimated 87 lakh jobs.

    source 1

  5. official

    Public Procurement Policy for Micro and Small Enterprises notified

    The Ministry's Order mandates that Central Ministries, Departments and CPSEs source at least 25 percent of annual procurement from MSEs, with 4 percent from SC/ST-owned and 3 percent from women-owned units, and reserves 358 items for exclusive MSE procurement. In 2024-25 participating buyers procured Rs 93,017.08 crore, or 43.58 percent, from MSEs.

    source 1

  6. official

    Cabinet approves Technology Centre Systems Programme (TCSP)

    The CCEA clears a World Bank-assisted programme to build 15 new Technology Centres and modernise existing ones at an estimated Rs 2,200 crore; it was later extended to September 2026 at a revised Rs 2,402 crore. Nine of the new centres have since been commissioned, from Bhiwadi and Visakhapatnam to Imphal and Puducherry.

    source 1

  7. official

    Scheme for Promotion of MSMEs in the North Eastern Region and Sikkim launched

    A dedicated infrastructure and common-facility scheme for the NER, continued through the 15th Finance Commission cycle (2021-2026) with an outlay of Rs 295 crore. As of 15 December 2025 it had approved 73 proposals since inception.

    source 1

  8. official

    CHAMPIONS grievance and handholding portal launched

    The Ministry opens a single online window for MSME grievance redress and e-governance. From launch to 18 December 2025 it received 1,62,546 grievances, of which 1,61,540 (99.38 percent) were replied to on the portal.

    source 1

  9. 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.

    source 1

  10. official

    Self Reliant India (SRI) Fund begins equity funding of MSMEs

    The Ministry's fund-of-funds, with NSIC Venture Capital Fund Ltd as the mother fund, starts placing equity in growth-stage MSMEs. By 30 November 2025 it had empanelled 69 daughter funds and invested Rs 1,823 crore in 682 MSMEs.

    source 1

  11. official

    MSME Innovative scheme launched with incubation, design and IPR components

    A component of the MSME Champions umbrella that funds idea incubation, design projects and IP protection. It has approved 773 Host Institutes, signed 21 design MoUs with IISc, IITs and NITs, and secured 191 patents, 807 trademarks, 99 designs and 6 GI registrations through IP Facilitation Centres.

    source 1

  12. official

    MSME Sustainable (ZED) Certification scheme launched

    The Zero Defect Zero Effect certification scheme becomes the Ministry's main quality and sustainability instrument for enterprises. It has registered 2,71,373 MSMEs and certified 1,92,689 of them (1,89,268 Bronze, 1,913 Silver, 1,508 Gold).

    source 1

  13. 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.

    source 1

  14. 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.

    source 1

  15. official

    MSME Competitive (LEAN) scheme launched

    The third MSME Champions component pushes lean manufacturing practice, with 32,077 MSMEs registered, 31,987 taking the Lean pledge, 7,394 attaining Basic Lean Certification and 1,871 registered at the Intermediate level.

    source 1

  16. official

    PM Vishwakarma scheme launched for artisans in 18 trades

    An end-to-end support scheme covering skilling, toolkits, collateral-free concessional credit and market linkage for craftspeople working with hands and tools. Its 30 lakh beneficiary-registration target was met within two years; Rs 2,257 crore was sanctioned to 2.62 lakh beneficiaries and 10.57 lakh toolkits delivered during 2025 alone.

    source 1

  17. official

    Yashasvini campaign launched to close the Udyam gender gap

    The Ministry begins a registration drive targeting gender parity on the Udyam and Udyam Assist portals by 2029 and the mandated 3 percent public-procurement share for women-owned MSEs. The campaigns have since facilitated registration of over 12.5 lakh women-owned MSMEs.

    source 1

  18. official

    CGTMSE crosses one crore cumulative guarantees in its 25th year

    The Credit Guarantee Scheme for Micro and Small Enterprises passes one crore guarantees since inception; 29.03 lakh guarantees worth Rs 3.77 lakh crore were approved between 1 January and 30 November 2025, with the guarantee ceiling raised from Rs 5 crore to Rs 10 crore from 1 April 2025.

    source 1

  19. 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.

    source 1

  20. 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.

    source 1

  21. official

    Online Dispute Resolution portal opened for delayed-payment cases

    The Ministry adds a low-cost, end-to-end digital track for MSE delayed-payment disputes alongside the existing MSEFC machinery, filing to resolution, aimed at making claims viable even at very small values.

    source 1

  22. official

    Udyam and Udyam Assist registrations cross 7.3 crore enterprises

    Cumulative registrations since 1 July 2020 reach more than 7.30 crore, comprising 4.37 crore on the Udyam portal and 2.92 crore informal micro enterprises on the Udyam Assist Platform, the register that determines MSME eligibility for priority-sector lending, guarantees and procurement set-asides.

    source 1

  23. reference

    Parliament passes the MSMED (Amendment) Bill, 2026

    Introduced in the Rajya Sabha on 28 July and passed there on 3 August and by the Lok Sabha on 7 August 2026, the Bill empowers the central government to set MSME thresholds by notification on investment and turnover, makes Udyam-type registration voluntary for all MSMEs, requires central public sector enterprises to settle MSME invoices on TReDS, sets 90-day limits for mediation and for arbitral awards in delayed-payment disputes, requires at least 50% of an award to be paid to the supplier where a challenge is pending over six months, and replaces fines with warnings and civil penalties.

    source 1source 2

Frequently asked

What are India's revised MSME classification limits effective April 2025?
From 1 April 2025 an enterprise is Micro at up to Rs 2.5 crore of investment and Rs 10 crore of turnover, Small at up to Rs 25 crore and Rs 100 crore, and Medium at up to Rs 125 crore and Rs 500 crore. The classification is composite: an enterprise must satisfy both the investment and the turnover ceiling for its category. The higher thresholds — 2.5 times the previous investment limits and twice the turnover limits — were announced in the Union Budget 2025-26 on 1 February 2025 and made operative for FY 2025-26 by notification S.O. 1364(E) of 21 March 2025. The same Budget doubled credit-guarantee cover for micro and small enterprises to Rs 10 crore and announced a Rs 5 lakh customised credit card for micro units. The MSMED (Amendment) Bill, 2026, passed by the Rajya Sabha on 3 August and the Lok Sabha on 7 August 2026, removes the numerical thresholds from the Act itself and empowers the central government to classify enterprises by investment and turnover through notification — so the ceilings above are those of the current notification, not of the statute. official · as of 2026-10-07 · source 1 source 2 source 3
How many enterprises are registered on India's Udyam portal?
More than 7.30 crore enterprises registered across the Udyam Registration portal and the Udyam Assist Platform between 1 July 2020 and 17 December 2025 — 4.37 crore on Udyam and 2.92 crore informal micro enterprises on Udyam Assist — per the Ministry of MSME. Udyam, launched on 1 July 2020, replaced the older Udyog Aadhaar filing with a self-declaration registration linked to PAN and GST; the Udyam Assist Platform, launched on 11 January 2023, brings informal micro enterprises below the GST threshold into the formal ambit for priority-sector lending. Under the MSMED (Amendment) Bill, 2026 passed by Parliament in August 2026, filing the registration memorandum becomes voluntary for all MSMEs on a digital platform the central government notifies. The ministry places the MSME sector at about 30.1 per cent of GDP, 35.4 per cent of manufacturing output and 45.73 per cent of exports. official · as of 2026-10-07 · source 1 source 2 source 3
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 2026-10-07: Parliament passes the MSMED (Amendment) Bill, 2026. Introduced in the Rajya Sabha on 28 July and passed there on 3 August and by the Lok Sabha on 7 August 2026, the Bill empowers the central government to set MSME thresholds by notification on investment and turnover, makes Udyam-type registration voluntary for all MSMEs, requires central public sector enterprises to settle MSME invoices on TReDS, sets 90-day limits for mediation and for arbitral awards in delayed-payment disputes, requires at least 50% of an award to be paid to the supplier where a challenge is pending over six months, and replaces fines with warnings and civil penalties.

Official sources

The government's own pages for this institution — go straight to the primary.

Related briefs

Related

Need sourced research on Ministry of MSME for a decision your organisation is making? Submit a research question.