MSMEs Cross 23-Cr Job Mark Despite Closures; Women Hold Over 5 Cr Jobs

The Micro, Small, and Medium Enterprises (MSME) sector in India has reported a significant milestone, with total employment surpassing 23 crore.

Data from the MSME Ministry reveals that 5.49 crore MSMEs registered on the Udyam portal have generated 23.14 crore jobs, a sharp rise from 13.15 crore jobs by 2.33 crore MSMEs recorded in August 2023. This reflects a growth of 10 crore jobs in just 15 months.  

Of the total employment, informal micro units contributed 2.84 crore jobs, and women accounted for 5.23 crore positions. Among registered enterprises, micro businesses dominate with 5.41 crore units, while small and medium enterprises number 7.27 lakh and 68,682, respectively.  

Since its launch in July 2020, the Udyam portal has seen MSME job counts grow from 2.8 crore to the current 23.14 crore.  

Broader Employment Landscape  

The MSME Ministry’s annual reports cite the National Sample Survey (2015-16), which estimates 6.33 crore unincorporated non-agriculture MSME units created 11.10 crore jobs across rural and urban India. These include 3.60 crore jobs in manufacturing, 3.87 crore in trade, and 3.62 crore in services.  

Additionally, Reserve Bank of India (RBI) data shows that 4.67 crore jobs were generated in FY24, bringing India’s total employment to 64.33 crore. Agriculture remains the largest employer, contributing over 45% of jobs, or approximately 25–29 crore.  

Challenges Persist  

Despite the remarkable job growth, the sector has also faced setbacks. MSME Minister Jitan Ram Manjhi disclosed in Parliament in July that 49,342 MSMEs have shut down since 2020, resulting in a job loss of 3.17 lakh positions. Closures were attributed to reasons such as changes in ownership, duplicate registrations, and lack of need for certification.