MSME Day: Can India Grow Without MSMEs? President Murmu Doesn’t Think So.

In a country where dreams often begin in the bylanes of small towns and aspirations take shape inside modest workshops, the MSME sector holds the beating heart of India’s economic engine. From a handicraft artisan in Bhuj to a precision tools manufacturer in Coimbatore, these micro, small, and medium enterprises do more than generate jobs — they hold up the country’s vision for inclusive, sustainable, and innovation-driven growth.

MSME Day 2025

This sentiment found a powerful voice from the highest office of the country as President Droupadi Murmu addressed the nation on the occasion of International MSME Day, reminding everyone that if India is to truly become a $5 trillion economy, MSMEs cannot be left behind — in fact, they must lead the way.

“MSMEs are a strong pillar of India’s economy,” the President declared during her address at the national function held in New Delhi. Her words carried not just ceremonial weight, but echoed the lived realities of millions of small business owners and workers across India.

Why MSMEs Matter So Much to India’s Future

President Murmu’s speech wasn’t a mere reiteration of facts. It was a timely reminder — backed by numbers and urgency — of the sheer scale and significance of this sector. Consider this:

• 30% of India’s GDP comes from MSMEs

• They contribute 36% to manufacturing output

• And drive 45% of India’s exports

That’s not just economic activity; that’s livelihood, grassroots innovation, and regional equity at work.

In a country where agriculture is still the primary employer, MSMEs come second — but not a distant second. What makes them even more valuable is their reach into rural and backward areas, where they provide employment, skill-building, and a sense of purpose to people who might otherwise migrate to cities in search of work. In doing so, MSMEs play a powerful role in decentralized development, helping bridge the urban-rural divide.

But There Are Cracks in the Foundation

Yet, as strong as the sector is, it isn’t without its share of hurdles. And President Murmu made sure not to gloss over them.

“Despite their growing relevance,” she said, “MSMEs face several persistent challenges.”

• Limited access to finance

• Stiff competition from larger corporates

• Lack of modern technology

• Shortage of skilled manpower

• Delayed payments from clients and institutions

Each of these challenges chips away at the sector’s resilience, especially for micro and small enterprises that often operate with razor-thin margins.

To tackle this, the government has put in motion a set of critical policy reforms. The revised classification norms for MSMEs, for instance, now allow more businesses to avail of MSME benefits. Credit access has been enhanced, and Central Public Sector Enterprises (CPSEs) are now required to procure 35% of their needs from MSEs, a significant push for market access.

One of the standout initiatives the President pointed to was the PM Vishwakarma Yojana, aimed at upgrading the skills of traditional artisans — many of whom operate in the informal economy. Another forward-thinking move was the Online Dispute Resolution (ODR) Portal, meant to address the long-standing issue of delayed payments that often puts small enterprises in financial distress.

The Push Toward Innovation, Women-Led MSMEs, and Green Growth

While financial reforms and policy updates matter, President Murmu believes that the next leap forward must come from innovation, sustainability, and inclusion.

“MSMEs contribute significantly to economic growth, but they also account for a substantial share of energy consumption and emissions,” she said. “Promoting green practices is vital for enhancing sustainability and meeting India’s climate goals.”

That’s a powerful call to action, especially when seen in the context of global trends. Green tech adoption in MSMEs is not just about climate responsibility; it’s becoming an imperative for cost-efficiency, exports, and future-readiness.

Another encouraging trend the President highlighted was the rise of women entrepreneurs in the MSME sector. Though still underrepresented, the increase in women’s participation signals a shift towards a more equitable and diverse entrepreneurial ecosystem. She urged young women to seize the opportunity, build businesses, and become catalysts for change.

“Local problems often need local solutions. And MSMEs are best placed to deliver them,” she remarked — reinforcing the idea that the sector is not just a contributor to the economy, but a driver of innovation at the grassroots level.

A Global Day, A Local Message

June 27, celebrated as International MSME Day, is recognized by the United Nations as a day to honour the role these enterprises play globally — and rightly so. Across the world, MSMEs make up 90% of businesses and provide over 50% of employment.

This year’s theme, “Enhancing the Role of MSMEs as Drivers of Sustainable Growth and Innovation,” couldn’t have aligned better with India’s current development path.

India’s MSME ecosystem is in the middle of a profound transformation — powered by digital tools, entrepreneurial energy, and governmental support. Whether it's a rural startup solving agri-tech problems or a D2C brand tapping into global markets, MSMEs are quietly rewriting India's economic script.

As President Murmu closed her address, one message stood tall: India’s growth story cannot be written without MSMEs at its core.

In a world racing toward urbanization, climate responsibility, and innovation-led development, these small enterprises may well be the torchbearers of big change. But only if they're empowered, heard, and supported.

In a country of a billion-plus dreams, the smallest players often make the biggest difference.