Cradle of entrepreneurship, employment, and growth: Why we celebrate MSME Day
Jun 17, 2025
Synopsis
Through resilience, adaptability and innovation, MSMEs in India and around the world are fostering economic growth.
MSME Day recognises the vital roles played by these enterprises in innovation, job creation, and economic growth.
Every year the world celebrates MSME (micro-, small-, and medium-sized enterprise) Day on June 27. In 2017, the United Nations General Assembly assigned June 27 as “MSME Day” with the objective to raise awareness of the immense contributions of MSMEs to the achievement of the United Nations Sustainable Development Goals (SDGs).
For India, which is home to more than 64 million MSMEs—only second to China—this is an important day. MSME Day recognises the vital roles played by these enterprises in innovation, job creation, and economic growth. The MSME sector contributes 30% to India’s gross domestic product (GDP) and about 45% to total exports. The sector employs over 110 million people across the country.
“MSMEs play a transformative role in the economic growth of our country. We are committed to nurturing and strengthening this sector,” Prime Minister Narendra Modi said in March.
As of June 10, 2025, as many as 64,607,210 MSMEs have registered on Udyam, which also includes registrations on the Udyam Assist Platform. These MSMEs drive competitiveness and productivity within the economy. They are the backbone of India’s economic landscape and have been consistently driving the nation’s growth. According to Union MSME Minister Jitan Ram Manjhi, the medium and small industries sector has registered 15 times growth over the past 10 years.
Their contribution to employment generation and entrepreneurship also leads to regional development. These MSMEs play an important role in regional development through their efforts in building businesses in underdeveloped and remote areas. They help decentralise economic activities and spread opportunities in semi-urban and rural areas.
MSMEs are present and contribute across all spectrums. They contribute massively to exports, as they manufacture a wide range of products for international markets, including making products for niche markets. If we talk about markets, one will find an Indian MSME in almost every sector, ranging from electronics, agriculture, and pharmaceuticals to household products. According to experts, one of the reasons India remains resilient during times of global turbulence is due to its MSMEs spread across various sectors reducing reliance on a single sector or industry.
MSMEs are also hubs of innovation as well as improvisation, or ‘jugaad’. They adapt to the current needs by embracing innovative practices and technological advancements. As a result, MSMEs often serve as crucial suppliers and contractors for large industries. Their contribution to the global value chain is irreplaceable.
MSMEs have contributed to developments in sectors like aerospace and defence through schemes such as the Public Procurement Policy for MSEs, the Technology Development Fund, and the iDEX (Innovations for Defence Excellence) framework. The Chandrayaan-3 mission, which took place in 2023, had immense support from MSMEs in India. As per former MSME Minister Narayan Rane, the Bhubaneswar Tool Room, under the Ministry of MSME, developed 54,000 aerospace components of 437 types for the Chandrayaan-3 mission.
As per experts and industry players, India’s MSMEs deserve recognition for their boundless energy and achievements; recognising their efforts, accomplishments, and impact on the economy is only fair.
On the occasion of World MSME Day on June 27, 2025, ET Digital will also open registrations for its sixth edition of the ET MSME Awards 2025. The coveted award programme celebrates India’s top MSMEs for their achievements and contribution to the nation’s economic development.
[The Economic Times]
