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RBI's Malhotra: MSMEs Are Entrepreneurship Nursery, Support Continues
RBI Governor Malhotra said MSMEs are India's entrepreneurship nursery and the central bank will keep supporting them. The sector accounts for 31.1% of GDP, 48.58% of exports, and employs 32.8 crore people. The RBI's awareness week runs now.
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Reserve Bank of India Governor Sanjay Malhotra called Micro, Small and Medium Enterprises the country's "entrepreneurship nursery" and said the central bank will keep extending strong support to the sector. Speaking Sunday during a dedicated awareness week, Malhotra described MSMEs as vital for income generation and employment.
"A number of schemes, number of measures have been taken by RBI to improve the flow of credit to MSMEs," he told reporters. The central bank's push includes transitioning informal businesses into the formal economy, he said, pointing to digital platforms like GeM, TReDS, and SAMADHAAN that give smaller businesses market access and faster dispute resolution.
Government data backs the sector's weight. MSMEs contribute 31.1% to India's GDP and generate 48.58% of total exports. The sector spans more than 7.47 crore enterprises across manufacturing, trade, and services, producing 35.4% of manufacturing output. It supports livelihoods for roughly 32.8 crore people, making it the second-largest employer after agriculture. As of March 2026, over 7.9 crore MSMEs and informal micro-enterprises had registered through the Udyam and Udyam Assist platforms.