MSME Sector Growth Slows Down in Madhya Pradesh Over Last Two Years

According to data from the Union government, Madhya Pradesh’s MSME sector has grown less during the last two years. Over the previous two years, MP saw a decline in the number of MSMEs registered on the Union government’s Udyam Registration Portal (URP).

Manufacturing, services, and trading are the three industries where MSMEs are recognised. Compared to 2023–2024, MSME registrations in MP decreased in all three industries in 2024–2025.

For MSMEs to be recognised by the government and get a number of benefits, such as access to government schemes and subsidies and participation in procurement processes, they must register on the Udyam Registration Portal. Additionally, there were more MSMEs that closed in the state in 2024–2025 than in 2023–2024.

#Shut Down Rate Higher than Opening New MSMEs in MP

According to the data that was made public, more MSMEs were closed in 2024–25, while fewer were registered in 2023–24. Over the past two years, there has been a decrease of 17,845 MSME units in MP in terms of new businesses registered on the URP and Udyam Assist Platform (UAP), both by year and sector.

In the three sectors of manufacturing, services, and trading, a total of 231,164 units were registered in 2024–2025; this was smaller than the 249,009 units registered in 2023–2024. There were 1,961 businesses deregistered as a result of shutdowns in 2024–2025 compared to 552 in 2023–2024.

This was further supported by data presented to the Rajya Sabha on August 4 by Minister of State for Micro, Small, and Medium Enterprises Shobha Karandlaje on new businesses registered on URP and UAP by state, year, and sector.

How Udyam Helping MSMEs of India?

To make it easier for MSMEs to register, the Ministry of MSME introduced the Udyam Registration Portal (URP) on July 1, 2020. In collaboration with the Small Industries Development Bank of India (SIDBI), the Udyam Assist Platform (UAP) was introduced on January 11, 2023, for Informal Micro Enterprises (IMEs) that do not have a PAN and are not subject to GST.

The goal of the project was to make conducting business easier, provide MSMEs a sense of identity, and qualify them for the schemes’ benefits. The union government added that MSMEs may deregister for a number of reasons, including ownership changes, firm location changes, and more. As a percentage of all MSMEs that have registered since the definition was revised on July 1, 2020, the number of MSMEs that have closed in the nation is 0.15%, according to the Udyam Portal.

Madhya Pradesh MSME Development Policy 2025

In 2017, the United Nations General Assembly proclaimed June 27th to be “International MSME Day”. The Madhya Pradesh’s MSME Development Policy 2025 was unveiled recently by the state government.

On this year’s “International MSME Day”, Chief Minister Mohan Yadav stated that MP’s MSMEs have become important designers of the state’s social and economic future. According to Yadav, the government wants to use the MSME sector to guarantee that at least one member of every family works for themselves or is employed.