India’s MSME Sector Contributes Over 31% to GDP, Generates 38.9 Crore Jobs

New Delhi, June 26: India’s Micro, Small and Medium Enterprises (MSME) sector continues to play a key role in the country’s economic growth, with its contribution to the national GDP crossing 31% and employment rising to 38.9 crore, according to recent official estimates.

The sector remains one of the largest employment generators in the country, supporting livelihoods across manufacturing, services, and trade segments. Officials noted that MSMEs are also a crucial driver of exports and industrial output.

The growth has been supported by various government initiatives aimed at improving access to credit, promoting digital adoption, and enhancing ease of doing business for small enterprises.

Experts said the steady expansion of the MSME sector reflects its resilience and its central role in strengthening India’s self-reliant economic framework. The sector continues to support inclusive growth by generating employment opportunities across urban and rural areas.

The latest figures underline the MSME sector’s importance as a backbone of the Indian economy, contributing significantly to GDP while also absorbing a large share of the workforce.