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Tag: MSME Policy

  • 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.

    Quick Shots

    •Registrations
    on Udyam Portal decline across manufacturing, services, and trading sectors
    in 2024–25 compared to 2023–24.

    •Total
    registrations fell from 2,49,009 (2023–24) to 2,31,164 (2024–25) – a drop of
    17,845 units.

    •Closures
    surged: 1,961 MSMEs shut down in 2024–25 vs. 552 in 2023–24.

    •CM Mohan
    Yadav on International MSME Day (June 27): MSMEs are key to the state’s
    economic and social growth.

  • The State of Telangana’s New MSME Policy Assists Female Entrepreneurs

    Telangana has made significant progress in the direction of encouraging female entrepreneurs through the implementation of its MSME policy, which was recently unveiled. According to the most recent figures, the state has 58,644 women entrepreneurs who have registered their businesses on the Udyam portal of the Centre. In Telangana, which is home to more than 1.88 crore women, this essentially amounts to 3.1 women entrepreneurs for every 1,000 women in the state.

    With a state of affairs in October 2022, the NITI Aayog’s study on women entrepreneurs places Telangana at the third spot on the list. 7.85 percent of micro, small, and medium-sized enterprises (MSMEs) were held by women. West Bengal was at the top with a percentage of 23.42%, while Tamil Nadu had a percentage of 10.37%.

    “The new MSME policy in Telangana marks a pivotal moment for women entrepreneurs. It opens up a world of possibilities, empowering us to pursue our ambitions with renewed confidence. This initiative provides essential resources, financial backing, and mentorship opportunities tailored specifically for women-led businesses. With this support, we can expand our ventures and enhance our offerings, ultimately reaching more families in our communities. It’s truly inspiring to see a government recognise the vital contributions that women make to the economy and society at large. This policy isn’t just about financial assistance; it represents a commitment to creating an inclusive environment where women can thrive,” said Akanksha Sharma, CO-Founder & CEO, CITTA.

    MSMEs Led by Women in India

    With 12.39 million women-led businesses out of a total of 60.84 million micro, small, and medium-sized companies (MSMEs), women-owned MSMEs accounted for 20.37 percent of all MSMEs on a national scale. This, however, indicates that the majority of these businesses owned by women are very small, and the majority of them fall into the category of micro firms. What’s more, the majority of them are run by a single individual.

    Only 17 percent of these kinds of enterprises had employees, and ninety-five percent of those who did have employees had five or less employees. The report continues to suggest that the proportion of women-owned businesses is reduced as the size of the enterprise increases.

    Obstacles Faced by Female Entrepreneurs

    According to Dr. Anupama Panduru, who serves as the Chairperson of the Indian Women Network (IWN) Telangana for the CII, 93.6% of the women entrepreneurs in the state are operating in the nano and micro segments. The manufacturing industry is home to a large number of female entrepreneurs; nevertheless, there are a number of obstacles that must be overcome. These obstacles include the high cost of entrance into the industry as well as necessities such as subsidies, worker accommodations, and specialised labour.

    K. Rama Devi, the Chairperson of ALEAP WE-HUB, pointed out that maintaining a business continues to be a difficulty for women entrepreneurs, despite being able to gain access to financial resources and experiencing an overall improvement in conditions. The majority of these businesses that are managed by women are unable to expand and thrive in such a competitive market because they lack the marketing strength necessary to sell their products or services.

    The state government was approached by CII-IWN with a number of recommendations, including an industrial park strategy, the necessity of worker housing, the necessity of subsidies to lower the cost of starting up business for women entrepreneurs, and access to a pool of skilled labour.

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