Lok Sabha Question No. 4542 (UNSTARRED), answered on 2026-03-19
Subject: Sustainability of MSMEs
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Ms. Praniti Sushilkumar Shinde

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION NO. 4542 TO BE ANSWERED ON 19.03.2026

## SUSTAINABILITY OF MSMEs

## 4542.      MS. PRANITI SUSHILKUMAR SHINDE:

Will the Minister of MICRO, SMALL AND MEDIUM ENTERPRISES be pleased to state:

- (a) whether it is a fact that nearly 79,000 Micro, Small and Medium Enterprises (MSMEs) have shut down between 2021-22 and 2024-25, with the number of closures increasing each year and if so, the details thereof, year-wise;
- (b) the main reasons identified by the Government for such closures, including issues relating to access to credit, rising input costs, compliance burden and market slowdown;
- (c) whether it is also a fact that the share of MSMEs in India's total Gross Value Added (GVA) has remained almost unchanged at around 29.6 per cent since 2014, despite repeated assertions that MSMEs are key drivers of growth and employment and if so, the details thereof; and
- (d) the  steps  taken  by  the  Government  to  strengthen  the  sustainability,  productivity  and employment generation capacity of MSMEs and to prevent further closures?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SUSHRI SHOBHA KARANDLAJE)

(a)  and (b): As per the Udyam Registration portal since 01.07.2020 till 28.02.2026, total 1.37 lakh Micro Small and Medium Enterprises (MSMEs) have closed/shut down while total 7.83 crore have MSMEs registered during the same period. The number of MSMEs shut down as a proportion of the total those which have registered since then is 0.17 %.

Whereas as per the portal data since 2021-22 to 2024-25 total 78,786 enterprises have been shut down. Enterprises de-register or show closure on the Portal due to a number of reasons such as change in the company owner, certificate not required anymore, duplicate registration and such other reasons. The details of shut down of enterprises are given below:

| Year    | Total (No. of MSMEs Shut down)   |
|---------|----------------------------------|
| 2021-22 | 6,222                            |
| 2022-23 | 13,290                           |
| 2023-24 | 19,828                           |
| 2024-25 | 39,446                           |

- (c): As  per  the  Information  provided  by  National  Accounts  Division  (NAD),  Ministry  of Statistics and programme Implementation, the share of MSMEs in India's total Gross Value Added (GVA), since 2014-15 at current and constant prices is given below:

| At constant prices (Figures in Rs. Crores)   | At constant prices (Figures in Rs. Crores)   | At constant prices (Figures in Rs. Crores)   | At constant prices (Figures in Rs. Crores)   | At constant prices (Figures in Rs. Crores)   |
|----------------------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|----------------------------------------------|
| Year                                         | Share of MSMEGVAin All India GVA (in %)      | TotalMSME GVA                                | All India GVA                                | Share ofMSME GVAin All India GVA (in %)      |
| 2014-15                                      | 32.2                                         | 31,78,165                                    | 97,12,133                                    | 32.7                                         |
| 2015-16                                      | 32.3                                         | 34,89,114                                    | 1,04,91,870                                  | 33.3                                         |
| 2016-17                                      | 32.2                                         | 37,69,625                                    | 1,13,28,285                                  | 33.3                                         |
| 2017-18                                      | 32.7                                         | 40,97,217                                    | 1,20,34,171                                  | 34.0                                         |
| 2018-19                                      | 33.6                                         | 44,40,227                                    | 1,27,33,798                                  | 34.9                                         |
| 2019-20                                      | 33.3                                         | 46,28,434                                    | 1,32,36,100                                  | 35.0                                         |
| 2020-21                                      | 29.7                                         | 39,85,736                                    | 1,26,87,345                                  | 31.4                                         |
| 2021-22                                      | 32.3                                         | 46,73,098                                    | 1,38,76,840                                  | 33.7                                         |
| 2022-23                                      | 33.0                                         | 50,66,033                                    | 1,48,78,028                                  | 34.1                                         |
| 2023-24                                      | 32.5                                         | 54,82,202                                    | 1,61,51,477                                  | 33.9                                         |

In the growing economy, the value of Total MSME GVA has increased from Rs. 31,78,165 crore in 2014-15 to Rs. 54,82,202 crore in 2023-24.

- (d): The  steps  taken  by  the  Government  to  strengthen  the  sustainability,  productivity  and employment generation capacity of MSMEs are as under:
- i. Emergency Credit Line Guarantee Scheme (ECLGS) of Rs.5 lakh crore was launched as part of  Aatmanirbhar  Bharat  Abhiyan  to  support  eligible  MSMEs  and  business  enterprises  in meeting their operational liabilities and restarting their businesses.
- ii. Under the Credit Guarantee Scheme (CGS) for Micro and Small Enterprises (MSEs) through Credit Guarantee Fund Trust for Micro and Small Enterprises to provide credit guarantee for loans extended to MSEs. The ceiling for guarantee coverage under the scheme is Rs 10 crore.
- iii. Rs. 50,000 crore equity infusion through Self Reliant India Fund.
- iv. Inclusion  of  Retail  and  Wholesale  traders  as  MSMEs  w.e.f.  02.07.2021  for  Priority  Sector Lending (PSL).
- v. Non-tax benefits extended for 3 years in case of an upward change in status of MSMEs.
- vi. Launch of Udyam Assist platform (UAP) on 11.01.2023 to bring Informal Micro Enterprises (IMEs) under the formal ambit for availing the benefit under PSL.
- vii. No global tenders for procurement up to Rs.200 crores.
- viii. To  protect  and  extended  relief  to  MSMEs  from  the  adverse  impact  of  the  COVID-19 pandemic  and  to  ensure  the  sustainability  of  their  operations,  the  Ministry  of  Finance, Government of  India vide O.M. No. F.1/1/2023-PPD dated 11.04.2023 introduced Vivad se Vishwas Scheme.

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