Fueling India@79: How MSMEs Became the Powerhouse of a New Economic Era

The story of India's economic resilience and its ambitions to emerge as a $5 trillion economy cannot be told without acknowledging the vital role of Micro, Small and Medium Enterprises (MSMEs).

- REKHA SHARMA

Often called the "growth engine" of the nation, MSMEs contribute over 30% to India's GDP, nearly half of its exports, and employ over 11 crore people. Yet, for decades, these enterprises were constrained by red tape, lack of formal recognition, inadequate access to credit, and outdated technology.

Under the visionary leadership of Prime Minister Narendra Modi, the MSME sector has undergone unprecedented transformation—both in spirit and structure. The government's reforms have not been piecemeal fixes; they represent a holistic shift toward formalization, digital empowerment, technological advancement, and inclusive entrepreneurship.

It is important to highlight the glaring negligence of the opposition parties, who for years ignored the urgent need for policy reforms in the MSME sector. Their lack of vision and failure to act left millions of MSMEs struggling under archaic regulations and systemic barriers. The sector, vital for India's economic fabric, suffered immensely due to their shortsightedness and political inertia. In stark contrast, it is Prime Minister Modi's government that has taken bold strides to reshape the MSME landscape with progressive policies that truly empower these enterprises and unlock their full potential.

From Informal to Formal—The Digital Leap

One of the most significant game changers has been the launch of the Udyam Registration Portal (URP) in July 2020. In a country where form-filling was once synonymous with queues and paper trails, URP is fully online, paperless, and based on self-declaration. It gives MSMEs a unique identity and unlocks eligibility for government schemes without bureaucratic hurdles.