• Maharashtra is home to 82.63 lakh MSMEs, contributing nearly 40% to the state’s GSDP and generating employment for over 1.3 crore individuals. 

• MSME growth is powered by strong infrastructure, sectoral clusters, access to capital, and focused skilling and mentorship ecosystems. 

• The state’s diverse workforce plays a vital role in driving MSME productivity. 

• The Maharashtra Budget 2025 sets ambitious goals, with ₹40 lakh crore in investments, 15 lakh new jobs, and export-led MSME growth. 

India celebrates Labor Day on May 1st to honor the hard work, dedication, and resilience of the workforce, but this has another special significance for the state of Maharashtra. The date is also celebrated as Maharashtra Day, when the state was formed in 1960.  

In both contexts, it’s a day to celebrate progress and pride as a reminder of the state’s remarkable achievements. At the heart of this progress are the MSMEs that embody the state’s entrepreneurial spirit and provide a major source of employment and economic growth.  

To truly understand the significance of small enterprises, let’s first look at where they stand today and the scale of their contribution to Maharashtra’s economy. 

Key Statistics and Contribution

Maharashtra is presently home to the largest number of MSMEs in India, with approximately 82.63 lakh Udyam-registered units—representing around 17% of the country’s total small businesses across India¹. These enterprises make a significant contribution to the state’s economy, accounting for nearly 40% of Maharashtra’s Gross State Domestic Product (GSDP). 

MSMEs also serve as a major source of employment, providing jobs to nearly 1.3 crore individuals across diverse sectors such as manufacturing, services, textiles, food processing, and IT-enabled services. 

Maharashtra remains the top contributor to India’s GST pool, accounting for ₹3.18 lakh crore in GST revenue in FY2024—approximately 19.6% of the country’s total collections.² With MSMEs forming the backbone of the state’s business ecosystem, their contribution to this revenue is significant. 

What’s driving Maharashtra MSMEs’ success?  

The strong performance by MSMEs stems from a combination of physical infrastructure, sectoral strength, financial depth, and knowledge access. These include: 

• World-class connectivity: Ports, airports, and industrial corridors open new logistics and trade channels. The recently developed Samruddhi Mahamarg expressway has further strengthened intra-state connectivity, significantly reducing travel time and boosting trade across key districts. 

• Robust industrial ecosystem: The state is home to high-performing clusters—Pune’s automotive belt, Mumbai’s financial services, and Nashik’s expanding vineyard economy, including newer hubs like Sangli and Solapur. These enable collaboration, value-chain efficiencies, and localised innovation. 

• Financial Capital & Trade Opportunities 
  With Mumbai as India’s financial nerve centre, MSMEs gain access to funding, investor networks, export assistance, and global trade platforms. The city also hosts key financial institutions that streamline credit availability. 

• Knowledge Capital 
  Maharashtra offers a fertile ground for entrepreneurial learning and support, with incubation hubs, training programs, and policy-linked skilling initiatives. This empowers MSMEs to adapt, grow, and stay competitive. For example, government-backed schemes such as Mahaswayam and Skill India Maharashtra offer targeted skilling for MSMEs. At the same time, industry associations like MCCIA and MIDC regularly conduct workshops and trade facilitation programs.  

The above factors have not only strengthened Maharashtra’s industrial base but also encouraged the development of a highly diverse and vibrant MSME sector across multiple Tier 1, 2 and 3 cities: 

• Agriculture and Allied Activities – Horticulture, floriculture, and high-value crops in regions like Ahmednagar, Jalgaon, and Sangli 

• Manufacturing – Engineering, automotive components, textiles, chemicals 

• Food Processing – Especially in districts like Nashik, Pune, and Satara 

• Textiles and Garments – Ichalkaranji, Solapur, Malegaon are main hubs 

• Information Technology (IT/ITES)  – Pune, Mumbai, and Navi Mumbai have a stronghold 

• Tourism and Hospitality – Especially around coastal regions, heritage sites, including the growing potential of wildlife tourism in Tadoba Andhari Tiger Reserve, Umred Karhandla Wildlife Sanctuary, etc.   

• Gems and Jewellery – Mumbai and Pune lead in trade, export, skilled manufacturing, and design 

With such a wide sectoral spread, Maharashtra ensures that MSMEs can flourish across different skill sets, geographies, and market needs, creating an ecosystem of opportunity for millions, who, in turn, keep the engine of the state’s economy running.  

What’s more, this workforce constitutes a wide spectrum of skill levels, including: 

• Skilled roles: Technicians, machine operators, software developers, and product designers, who bring technical expertise and innovation to production and service processes.

• Semi-skilled roles: Textile workers, carpenters, tourism guides, and food processing staff, who contribute specialized craftsmanship and operational efficiency.

• Unskilled roles: Helpers, cleaners, loaders, and delivery agents, who form the backbone of daily operations, logistics, and customer service.

This broad range of employment not only provides vital economic support to individuals and families but also acts as a catalyst for skill development, entrepreneurship, and upward social mobility. MSMEs create avenues for continuous learning, empowering workers to climb the economic ladder and inspiring many to eventually launch their own enterprises. To this end, the Maharashtra government and central agencies have launched several initiatives to uplift and train workers: 

• Maharashtra State Skill Development Society (MSSDS): Offers vocational training tailored for MSME sectors.

• Pradhan Mantri Kaushal Vikas Yojana (PMKVY): Implements training programs across Maharashtra with a focus on MSME-relevant skills.

• Cluster Development Programs: Help groups of MSMEs jointly train their workers for common needs. 

These skill development initiatives, combined with a deep-rooted industrial network, strengthen Maharashtra’s economy and prepare the workforce for future opportunities 

Driving Future Growth: ₹40 Lakh Crore Investment and Job Creation 

Recognizing the central role of MSMEs in driving inclusive growth, the Maharashtra government, in its 2025 Budget announced on March 9, has set ambitious targets for industrial expansion:

• ₹40 lakh crore investment target by 2047, with MSMEs playing a major role in achieving this goal. 

• Creation of 15 lakh new jobs under the new industrial policy announced in the Maharashtra Budget 2025.

• Specific focus on boosting MSME parks, common facilities, and plug-and-play infrastructure to make it easier for small businesses to scale. Notable initiatives include the Dindori MSME Park in Nashik, Butibori Industrial Area near Nagpur, and the Aurangabad Industrial City (AURIC), which integrates MSME zones with large-scale industrial infrastructure. These parks provide shared utilities, logistics support, and ready-to-use facilities, helping MSMEs reduce setup costs and accelerate operations.

• Aiming for a 20% share of exports from MSMEs, enhancing Maharashtra’s footprint in global markets.

While Maharashtra’s MSMEs have already achieved remarkable milestones, the above initiatives are designed to make them more future-ready, globally competitive, and innovation-driven. This should have a ripple effect, as global markets evolve and domestic demand rises. 

The state’s efforts in strengthening its MSMEs through targeted investments and reforms will also take into account the following new sectors that are rapidly opening up, offering fresh avenues for growth, innovation, and entrepreneurship: 

• Green Energy and Sustainability: Opportunities in solar, wind, and clean technologies. 

• Agro-processing and Organic Products: Boosting farm incomes and exports. 

• Healthcare and Biotechnology: Capitalizing on Mumbai and Pune’s healthcare hubs. 

• Digital Services and E-commerce: Growing demand for digital marketing, IT support, logistics services. 

To fully capitalize on these emerging opportunities and realize the ambitious goals set forth, a comprehensive and supportive environment for MSMEs is essential — one where policies, finance, infrastructure, and skills all work together. 

This is how it can be achieved: 

1. Improved Access to Finance: Despite several government schemes like the Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), many MSMEs struggle to access affordable finance. Strengthening credit flow, creating greater awareness about these schemes, and simplifying application processes can make a significant difference. It’s equally important to ensure that financial institutions and NBFCs expand their physical outreach across the state, making support accessible to MSMEs not just in Tier-1 and Tier-2 cities, but also rural and remote areas of the state.  

2. Streamlined Regulations: Simplifying registration, compliance, and taxation processes can free up MSME time and resources, helping them focus on business growth. 

3. Enhanced Skill Development: Expanding skill training programs, encouraging public-private partnerships in training, and focusing on emerging skills (like digital skills) will future-proof the workforce. 

4. Innovation Support: Providing grants, incubators, and technical assistance for MSMEs willing to innovate or adopt new technologies will boost productivity and open new markets. 

5. Stronger Industry Collaboration: Industry bodies like the Maharashtra Chamber of Commerce, Industry and Agriculture (MACCIA) and Federation of Indian Export Organisations (FIEO) play a key role in connecting MSMEs to markets, training, and policy advocacy. A closer partnership between government, industry bodies, and MSMEs can accelerate growth.