MSMEs Thrive On Customers, Connectivity, And Creativity

If this sector prospers, Gujarat and the country can achieve higher development, as MSMEs provide the largest employment opportunities, Sagale highlighted. 

Addressing the MSME Conclave on the final day of the two-day Vibrant Gujarat Regional Conference (VGRC), he pointed out that in an uncertain world, MSMEs were among the few sectors capable of driving growth.

In Gujarat, more than 2.7 million MSME units are operational.

Under the State MSME Policy, the government provided ₹4,100 crore in assistance over a three-year period. Meanwhile, under the Credit Guarantee Fund Trust for Micro & Small Enterprises (CGTMSE) scheme, over 100,000 unit operators received ₹19,000 crore in collateral-free loans.

During the panel discussion at the conclave, officials and experts provided insights to small enterprises into export diversification, effective utilisation of free trade agreements, understanding tariff systems, and building resilience against trade uncertainties.

Among the participants were Zlata Antusheva, Head of GR and Finance Sector and a trade representative from Russia; Milind Kamble, Chairman of DICCI; Hirva Mamtorah, MD&CEO of Indian Exim Finserv; Jaydeep Bhatia, CEO of Mantra Agri Solutions; Ashutosh Murkute, Director General of the National Institute for Small and Medium Enterprises; and Shankha Gupta, Director of Sberbank India.

Expanding The Sector

The panel opined that MSMEs need to expand by understanding regulatory frameworks, addressing supply chain challenges, and aligning with international quality standards in response to tariff and policy changes.

Recommendations for the sector included market accessibility, export diversification, and global connectivity. An expert noted that if the government modifies policies to provide maximum support, skill development, incentives, and mentorship, this sector can withstand any global economic slowdown.

Second Largest Employment-Generating Sector 

As of the end of May 2025, a total of 6.44 crore (64.4 million) MSME units in India are registered on the Udyam portal, providing employment to approximately 26.77 crore people and making it the largest employment-generating sector after agriculture.

The sector contributes 30.1% to India’s GDP, 35.4% to manufacturing output, and 45.73% to exports. This year, the Union Ministry allocated a budget of ₹23,168 crore for the MSME sector, 4.6% higher than the previous year.