Lok Sabha Question No. 391 (STARRED), answered on 2026-03-19
Subject: Infrastructure Bottlenecks faced by MSMEs
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Sanjay Dina Patil, Prof. Varsha Eknath Gaikwad

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

## LOK SABHA STARRED QUESTION NO. * 391. TO BE ANSWERED ON 19.03.2026

## INFRASTRUCTURE BOTTLENECKS FACED BY MSMES

- *391. SHRI SANJAY DINA PATIL: PROF. VARSHA EKNATH GAIKWAD:

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

- (a) whether a large number of Micro, Small and Medium Enterprises (MSMEs) in Mumbai and Mumbai  Metropolitan  Region  (MMR)  continue  to  face  structural  constraints  such  as  high  rentals, infrastructure bottlenecks and cost of compliance and if so, the details thereof;
- (b) whether  the  Government  has  examined  the  gap  between  the  large  number  of  MSMEs registered  on  the  Udyam  Portal  in  Mumbai  and  their  actual  access  to  institutional  credit,  common infrastructure facilities, skilling programmes and market linkages and if so, the details thereof;
- (c) whether a significant proportion of Udyam-registered MSMEs in Mumbai remain inactive or operate below capacity due to delayed credit disbursal, regulatory burden and limited access to public procurement and if so, the details thereof;
- (d) whether the outcome-based monitoring of employment generation claimed by MSME schemes has been undertaken specifically for Mumbai, if so, the details thereof; and
- (e) the measures proposed to ensure that MSME registrations in Mumbai translate into sustainable growth, competitiveness and quality employment?

## ANSWER

MINISTER FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI JITAN RAM MANJHI)

- (a) to (e): A statement  is laid on the table of the house.

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (e) OF THE LOK SABHA STARRED QUESTION NO. *391 FOR REPLY ON 19.03.2026.

(a) to (e): The  Central  Government  supplements  the  efforts  of  the  State/UT  Governments through various schemes, programmes and policy initiatives for overall development and promotion of Micro, Small and Medium Enterprises (MSMEs). These initiatives are aimed at providing ease of doing business, reducing compliance burden and the cost of compliance for MSMEs, strengthening the sector and providing infrastructure support to MSMEs across the country, including those located in Mumbai and Mumbai Metropolitan Region (MMR) in the state of Maharashtra.

The Ministry of MSME launched Udyam Registration Portal (URP) on 01.07.2020 to facilitate ease  of  registration  for  MSMEs.  The  registration  is  fully  online,  paperless  and  based  on  selfdeclaration.  A  registered  enterprise  becomes  eligible  to  avail  the  benefit  of  various  schemes  of  the Ministry of MSME, subject to eligibility criteria.

Since the launch of URP, a total of 7.82 crore MSMEs, including Informal Micro Enterprises (IMEs)  have  registered  on  URP,  as  of  28.02.2026.  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 registration of enterprises are given below:

| Details of MSMERegistration and De-registration, as per Udyam Registration Portal:   | Details of MSMERegistration and De-registration, as per Udyam Registration Portal:   | Details of MSMERegistration and De-registration, as per Udyam Registration Portal:   | Details of MSMERegistration and De-registration, as per Udyam Registration Portal:   |
|--------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|--------------------------------------------------------------------------------------|
| Data pertains to                                                                     | Total MSME Registered (from 01.07.2020 till 28.02.2026)                              | TotalMSME De-registered (from 01.07.2020 till 28.02.2026)                            | % of De- registered MSMEs vis-a vis registered MSMEs                                 |
| All India                                                                            | 7,82,97,060                                                                          | 1,37,189                                                                             | 0.17                                                                                 |
| Maharashtra                                                                          | 1,01,43,173                                                                          | 32,915                                                                               | 0.32                                                                                 |
| Mumbai                                                                               | 5,78,435                                                                             | 2,344                                                                                | 0.40                                                                                 |
| Mumbai Suburban                                                                      | 6,04,903                                                                             | 2,850                                                                                | 0.47                                                                                 |

Schemes like Credit Guarantee Scheme  (CGS), SRI Fund,  PM  Mudra  Yojana,  PM Vishwakarma,  Prime  Minister  Employment  Generation  Programme,  etc.,  are  implemented  by Government of India to facilitate access to institutional credit by MSMEs.  The figures may kindly be referred in this regard:

| Data pertains to                     | Credit Outstanding to MSMEs in Rs. Crore (as per RBI and SLBC)   | CGTMSE- No. of guarantees approved (from 2000 till 28.02.2026)   | CGS - Guarantees Amount approved in Rs. Crore (from 2000 till 28.02.2026)   | PMEGP Cumulative Project costs of established micro enterprises in Rs. Crore (FY 2021-22 to FY 2025-26, upto 18.03.2026)   |
|--------------------------------------|------------------------------------------------------------------|------------------------------------------------------------------|-----------------------------------------------------------------------------|----------------------------------------------------------------------------------------------------------------------------|
| All India( as on 31 st Dec 2025)     | 36,79,594.88                                                     | 1,39,39,040                                                      | 13,16,741                                                                   | 44,827.24                                                                                                                  |
| Maharashtra (as on 31 st March 2025) | 4,57,942.31                                                      | 11,58,843                                                        | 1,66,366                                                                    | 2,208.68                                                                                                                   |
| Mumbai                               | NA                                                               | 1,94,121                                                         | 37,679                                                                      | 6.29                                                                                                                       |
| Mumbai Suburban                      | NA                                                               | 17,606                                                           | 3,517                                                                       | 28.25                                                                                                                      |

The World Bank supported 'Raising and Accelerating MSME Performance' (RAMP)Scheme aims  to  scale  up  the  implementation  capacity  and  coverage  of  MSMEs  by  fostering  innovation, improving practices and processes, enhancing market access, promoting greening initiatives, scaling up guarantees to women-owned micro and small enterprises etc. The physical and financial progress of the  approved  projects  under  RAMP  with  respect  to  all  the  States/UTs  including  Maharashtra is monitored  on  a  regular  basis  by  conducting  SIP-Implementation  Plan  (IP)  review  meetings  and through National MSME Council meetings. The details of total fund allocation, released amount and utilization under RAMP in the State of Maharashtra are given as under:

| Sl. No.   | Details of fund status for Maharashtra (In Rs. Crore)   | Details of fund status for Maharashtra (In Rs. Crore)   | Details of fund status for Maharashtra (In Rs. Crore)   |
|-----------|---------------------------------------------------------|---------------------------------------------------------|---------------------------------------------------------|
|           | Total approved                                          | Total Released                                          | Total Utilised                                          |
| 1.        | 194.50                                                  | 48.7578                                                 | 21.43                                                   |

Micro and Small Enterprises (MSEs) - Cluster Development Programme (CDP) of Ministry of MSME  aims to enhance the productivity and competitiveness of MSEs by adopting cluster development approach by extending financial assistance as GoI grant to establish Common Facility Centers (CFCs) in the existing clusters and establish/up-grade infrastructural facilities in new/existing industrial estates/areas/flatted factory complexes. These proposals under the scheme are received from the State/UT Governments to address the common needs of existing cluster in their States/UTs.

| Status of CFCs &IDs under MSE-CDP in State of Maharashtra   | Status of CFCs &IDs under MSE-CDP in State of Maharashtra   | Status of CFCs &IDs under MSE-CDP in State of Maharashtra   | Status of CFCs &IDs under MSE-CDP in State of Maharashtra   | Status of CFCs &IDs under MSE-CDP in State of Maharashtra   |
|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|-------------------------------------------------------------|
| State                                                       | CFC                                                         | CFC                                                         | ID                                                          | ID                                                          |
|                                                             | Ongoing                                                     | Completed                                                   | Ongoing                                                     | Completed                                                   |
| Maharashtra                                                 | 31                                                          | 18                                                          | 0                                                           | 5                                                           |

With  the  objective  of  enhancing  market  linkages  for  MSMEs  the  Ministry  of  MSME, Government of India notified the Public Procurement Policy for Micro and Small Enterprises (MSEs), Order, 2012 (as amended in 2018), which mandates 25% annual procurement from MSEs by Central Ministries/Departments/Central Public Sector Enterprises (CPSEs), including 4% from MSEs owned by SC/ST and 3% from MSEs owned by Women entrepreneurs. As per MSME SAMBANDH Portal, a procurement  of  Rs.  93,272.88  crore  was  done  in  F.Y.  2024-25  from  MSEs  across  the  country, including in Maharashtra. Procurement and Marketing Support Scheme extends benefits to MSEs for market access through participation in Trade Fairs/ Exhibitions, Vendor  Development Programmes, adoption of Modern Packaging Technique, e-Commerce platforms, etc.

Entrepreneurship and Skill Development Programme (ESDP) aim to promote new enterprises, build capacity of existing MSMEs and inculcate entrepreneurial culture in the country. The progress of ESDP scheme in Maharashtra in three years, including current financial year are as given below:

|   S. No. | Financial Year            |   No. of Programmes Conducted |   No. of Beneficiaries |
|----------|---------------------------|-------------------------------|------------------------|
|        1 | 2023-24                   |                           386 |                  16669 |
|        2 | 2024-25                   |                          1338 |                  56200 |
|        3 | 2025-26 (Till 16.03.2026) |                          1104 |                  46364 |

Through these initiatives, employment has been generated. 7.82 crore MSMEs registered on Udyam Registration Portal have reported total employment of 34.50 crore as of 28.02.2026.

As per the third party evaluation study conducted by Ministry of MSME, covering sample of select  28,200 units assisted under PMEGP across the country between 2008-09 and 2023-24, it has been  suggested  that  PMEGP  contributes  positively  to  employment  generation  with  each  unit generating an average of nine jobs, income growth, profitability and overall development outcomes of the beneficiaries.

## Growth in MSME sector in last 3 years:

| Data pertains to                                        | All India    | All India                | Maharashtra   | Maharashtra              | Mumbai    | Mumbai                   | Mumbai Suburban   | Mumbai Suburban          |
|---------------------------------------------------------|--------------|--------------------------|---------------|--------------------------|-----------|--------------------------|-------------------|--------------------------|
| Data pertains to                                        | 2023         | 2026 (as on 28-02- 2026) | 2023          | 2026 (as on 28-02-2026 ) | 2023      | 2026 (as on 28-02- 2026) | 2023              | 2026 (as on 28- 02-2026) |
| Udyam Registrati ons                                    | 1,64,34,179  | 7,82,97,060              | 28,04,756     | 1,01,43,173              | 1,99,399  | 5,78,435                 | 2,23,225          | 6,04,903                 |
| Employm ent as per Udyam                                | 10,79,71,729 | 34,49,18,409             | 1,39,11,123   | 3,44,66,311              | 15,82,610 | 27,52,791                | 14,24,933         | 27,32,613                |
| Cumulati ve Credit Guarantee s amount approved (Rs. Cr) | 4,26,556     | 13,16,741                | 50,834        | 1,66,366                 | 10,390    | 37,679                   | 1,398             | 3,517                    |

Ministry  of  MSME,  through  its  field  offices,  regularly  organizes  outreach  programmes  in coordination with MSME/Industry Departments of States/UTs concerned including District Industries Centres (DICs) and other stakeholders like CGTMSE, SIDBI, Banks, MSME Associations, etc. to create awareness about the benefits of the Schemes.

*****