How MSMEs Can Leverage India’s Favourable Business Environment: Seizing New Opportunities in 2025

• India’s reform-led growth trajectory in 2025 is reshaping the business environment through infrastructure upgrades, financial access, digital governance, and skill development.
• MSMEs can benefit from reduced logistics costs, improved credit access (₹1.5 lakh crore), and streamlined compliance through initiatives like GST simplification and Insolvency and Bankruptcy Code (IBC) resolution enhancements.
• Platforms like Open Network for Digital Commerce (ONDC) (5.35 lakh sellers; 84% MSMEs) and National Single Window System (NSWS) (6,700+ approvals) are enabling greater digital inclusion and ease of doing business across geographies.
• Opportunities are expanding in key sectors such as manufacturing (Purchasing Managers’ Index- PMI >55), green energy (13% MSME participation), and software exports (₹8.68 lakh crore), with dedicated Production Linked Incentive (PLI) schemes and skilling programs to support entry.
• MSMEs can move from the margins to the mainstream of India’s Viksit Bharat vision by aligning with future-ready value chains and leveraging financing solutions

Over the past decade, India has climbed from 142nd in ease of doing business in 2015 to 63rd by 2020. It also moved from 43rd position in 2020 to 39th position in the World Competitiveness Index 2024. This is owing to the country’s economic landscape undergoing a strategic transformation, driven by long-term vision, structural reforms, and a clear intent to unlock growth.

The Union Budget 2025 reinforced this momentum, allocating targeted funds to the ‘Make in India’ initiative and infrastructure development. But these efforts are more than standalone achievements; they are stepping stones toward Viksit Bharat @ 2047, the national vision of a developed, inclusive, and innovation-led India by its centenary year of independence.

The cumulative effect of these reforms is a smoother, more responsive, and opportunity-rich business landscape. As policy reforms take hold, MSMEs are positioned to move from the margins to the mainstream of economic growth. Their integration into future-ready sectors is no longer optional; it’s already underway, and the environment is increasingly conducive to scale and diversification.

How MSMEs Can Leverage India’s Favourable Business Environment: Seizing New Opportunities in 2025

• India’s reform-led growth trajectory in 2025 is reshaping the business environment through infrastructure upgrades, financial access, digital governance, and skill development.
• MSMEs can benefit from reduced logistics costs, improved credit access (₹1.5 lakh crore), and streamlined compliance through initiatives like GST simplification and Insolvency and Bankruptcy Code (IBC) resolution enhancements.
• Platforms like Open Network for Digital Commerce (ONDC) (5.35 lakh sellers; 84% MSMEs) and National Single Window System (NSWS) (6,700+ approvals) are enabling greater digital inclusion and ease of doing business across geographies.
• Opportunities are expanding in key sectors such as manufacturing (Purchasing Managers’ Index- PMI >55), green energy (13% MSME participation), and software exports (₹8.68 lakh crore), with dedicated Production Linked Incentive (PLI) schemes and skilling programs to support entry.
• MSMEs can move from the margins to the mainstream of India’s Viksit Bharat vision by aligning with future-ready value chains and leveraging financing solutions

Over the past decade, India has climbed from 142nd in ease of doing business in 2015 to 63rd by 2020. It also moved from 43rd position in 2020 to 39th position in the World Competitiveness Index 2024. This is owing to the country’s economic landscape undergoing a strategic transformation, driven by long-term vision, structural reforms, and a clear intent to unlock growth. 

The Union Budget 2025 reinforced this momentum, allocating targeted funds to the ‘Make in India’ initiative and infrastructure development. But these efforts are more than standalone achievements; they are stepping stones toward Viksit Bharat @ 2047, the national vision of a developed, inclusive, and innovation-led India by its centenary year of independence.

The cumulative effect of these reforms is a smoother, more responsive, and opportunity-rich business landscape. As policy reforms take hold, MSMEs are positioned to move from the margins to the mainstream of economic growth. Their integration into future-ready sectors is no longer optional; it’s already underway, and the environment is increasingly conducive to scale and diversification.

India in 2025: An MSME-Friendly Economy in the Making

India’s reform roadmap for 2025 reflects a comprehensive effort to reduce business friction, unlock efficiencies systematically, and promote growth through coordinated policy shifts across infrastructure, taxation, governance, and skilling. For MSMEs, these reforms are opening new doors to scale operations, integrate into future-ready sectors, and enhance competitiveness.

Major pillars of this reform are:

A] Infrastructure Development: Creating Scalable Pathways for MSMEs

India’s infrastructure upgrade is reshaping how businesses connect, operate, and deliver. With more than 9,288 projects under the National Infrastructure Pipeline between 2020 and 2025, and ₹31 trillion worth already completed by early 2025, logistics bottlenecks are being addressed on a large scale. Plus, the PM Gati Shakti Yojana, launched in 2021, has facilitated coordination across ministries, resulting in improved freight planning, multimodal transport integration, and faster project execution.

For MSMEs, these efforts translate into more reliable market access, reduced supply chain disruptions, and cost savings, particularly for those in industrial clusters or remote areas. Plug-and-Play industrial parks have expanded to over 100 cities as of 2024, providing ready-to-use facilities that reduce capital expenditure and speed up operational readiness. The National Monetisation Pipeline (2022–25) targets ₹3.85 trillion from asset monetisation, reinvesting proceeds into fresh infrastructure projects that keep growth momentum steady. Reducing logistics costs from 14% to 8% of GDP (targeted by 2030) will enhance export competitiveness and delivery timelines for MSMEs.

B] Finance and Taxation Reforms:

In recent years, a series of financial and taxation reforms have been introduced with a strong focus on easing credit access, reducing compliance burdens, and encouraging formalization among small businesses.

• The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) has doubled its coverage from ₹5 crore to ₹10 crore, potentially unlocking ₹1.5 lakh crore in fresh credit. A new Micro Enterprise Card (ME-Card), offering micro units credit up to ₹5 lakh, is expected to benefit 10 lakh enterprises in its first year. These measures aim to ease access to working capital for small businesses.
• The Emergency Credit Line Guarantee Scheme (ECLGS), though now closed, supported over 1.15 crore borrowers during the pandemic. It prevented widespread closures and improved repayment behavior among MSMEs, earning recognition from institutions like the RBI and World Bank.
• On the taxation front, the introduction of presumptive taxation under Section 44AD eased filing for units with turnover up to ₹2 crore. Relaxations like section 80J exemption, reduced Tax rate under 115BA for eligible MSMEs, tax holidays for eligible startups and incentives for digital transactions further boost financial flexibility.
• GST has been a mixed experience. While over 1.36 crore MSMEs are registered under the GST regime (as of July 2023), compliance complexities, high rates, delayed input tax credits, and uneven slabs strain MSMEs. Recent reforms aim to simplify GST with fewer slabs, quarterly filings, and better portal efficiency. Later, to ease GST registration, the CBIC’s 2024 directive reduced unnecessary scrutiny, set strict timelines, and required minimal documents, improving predictability for MSMEs.
• To improve recovery rates and ensure timely resolution of distressed assets, the Insolvency and Bankruptcy Code (IBC) was introduced in 2016. Since its inception, 8,308 companies have entered the process and the resolution rate improved from 15% to 32.1% as of FY2025. 

Together, these financial and taxation reforms reflect a broader policy shift towards enabling MSME resilience and growth. While the outcomes vary across different segments of the sector, the overall direction indicates a stronger ecosystem where small businesses are better equipped to access capital, comply with regulations, and contribute meaningfully to India’s economic trajectory.

C] Digital Governance and India Stack:

Digital governance under the Digital India Programme has significantly improved transparency, efficiency, accountability in government-business interactions, streamlining digital tax filing and compliance.

At the core of this digital transformation is the India Stack Initiative 2.0, which is revolutionizing how MSMEs access credit, markets, and business networks. A flagship component of this initiative is the Open Network for Digital Commerce (ONDC), an open and inclusive digital marketplace that removes the dominance of closed ecosystems. As of 2024, ONDC hosts 535,000 sellers across 1,200 cities, with MSMEs accounting for 84% of sellers and contributing 56% of total orders, thereby enhancing their visibility and business opportunities. 

To further drive adoption, the Ministry of MSME has launched the MSME Trade Enablement and Marketing (MSME-TEAM) initiative, targeting onboarding 500,000 MSMEs onto the ONDC platform. These digital solutions streamline operations and foster greater financial inclusion by helping MSMEs create reliable digital financial footprints.

Alongside this works the National Single Window System (NSWS), a digital platform launched to centralize and expedite business approvals and clearances from both central and state governments. NSWS offers centralized access to 643 central and 6,113 state-level approvals, reducing the time and cost of business approvals and creating an MSME-friendly environment.

Recognizing the evolving scale and ambitions of MSMEs in the Union Budget 2025, the government raised MSME investment thresholds by 2.5 times and doubled turnover limits, thereby expanding eligibility and enabling more enterprises to benefit from government schemes and contracts. 

D] Skilling, R&D, and Innovation Support for MSMEs:

A skilled workforce and a strong culture of innovation are essential to the competitiveness and resilience of MSMEs. To support this, the government has introduced several targeted initiatives aimed at enhancing technical capabilities and facilitating the adoption of advanced technologies across the MSME sector.

• Tech Skilling for MSMEs: FutureSkills Prime, a NASSCOM-backed initiative, has been equipping professionals with expertise in AI, cybersecurity, and cloud computing through certified courses. This effort has improved employability; the India Skills Report 2025 recorded a rise to 54.81%, up from 51.25% in 2024.
• R&D & Innovation Investments: India ranks 6th globally in R&D investments (PPP terms). Gross Expenditure on R&D more than doubled from ₹60,196.75 crore in 2010-11 to ₹127,380.96 crore in 2020-21. To further accelerate innovation, academia-industry collaboration has been expanding, supported by strengthened Intellectual Property (IP) frameworks.
• IP & Startup Incubation Support: The MSME Innovative Scheme, launched in March 2022, has been providing assistance to startups with incubation, design development, and IP registration. By 2025, 697 Host Institutes had been approved to support idea incubation, while MSME Hackathon 4.0 (Sept. 2024) awarded ₹15 lakh grants to 500 young innovators.
• Industry 4.0 & Digital Transformation: To ease the integration of digital technologies and enable Industry 4.0 adoption, the government is upgrading its network of Technology Centres into India SME Industry 4.0 Competence Centres. These operate through a hub-and-spoke model, offering access to AI, IoT, and automation, ensuring MSMEs across regions stay competitive.

Challenges That Need Attention:

Despite ongoing reforms, key bottlenecks continue to affect MSME growth and competitiveness:

1. Credit Access Remains Constrained

A ₹30 lakh crore credit gap still exists, especially for rural and women-led MSMEs. Strict eligibility norms and collateral requirements push many towards informal and high-cost lenders.

2. Weak Infrastructure in Rural Areas

Poor transport, irregular electricity, and lack of modern facilities hamper productivity and digital adoption for MSMEs in remote regions, impacting sectors like agro-processing and handicrafts.

3. Regulatory and Compliance Burden

Complex GST norms, labor laws, and environmental regulations consume significant time and resources. Many MSMEs cite difficulties in filing returns and availing timely Input Tax Credit (ITC).

4. Digital Adoption Gaps

While 68% of MSMEs acknowledge the value of digital technology, adoption remains low in Tier II/III cities due to high costs, limited awareness, and lack of technical support.

5. Skilling and Workforce Mismatch

According to the India Skills Report 2025, employability has improved to 54.81%, but gaps remain as a large share of workers remain low- or semi-skilled, slowing tech integration and productivity gains.

6. Low Investment in Marketing

Limited budgets for branding and advertising prevent many MSMEs from standing out in competitive markets, reducing visibility and profitability in both domestic and export segments.

Key Growth Opportunities for MSMEs in 2025

A. Manufacturing & Exports

India’s focus on expanding domestic production through the ‘Make in India’ initiative, along with global supply chain shifts under the China+1 strategy, is creating space for MSMEs to contribute more actively in electronics, electric vehicles, defence, and renewable energy. 

With the manufacturing Purchasing Managers’ Index (PMI) holding steady above 55 since early 2024, business activity remains on an upward trend. This environment is encouraging MSMEs to expand capacity, invest in technology, and integrate with larger value chains, both domestically and for exports. Plus, PLI schemes for 14 key sectors, with an outlay of ₹1.97 lakh crore, aim to boost India’s manufacturing and exports. 

B. Digital Transformation

Complementing this manufacturing drive is the growing adoption of digital tools. Through SME 4.0 Competence Centres, MSMEs can access subsidised technologies and skilling programs to adopt AI, IoT, and automation. For many businesses in Tier II and III cities, practical solutions like mPOS systems are becoming popular for streamlining payments, maintaining digital records, and accessing customer insights.

C. Green and Sustainable Business

At the same time, India’s clean energy transition is opening new value chains. Over 81.9 lakh registered MSMEs are now engaged in green sectors such as solar energy, recycling, and water conservation (MSME Ministry, 2024), reflecting a growing shift toward climate-conscious operations. From manufacturing solar components to offering decentralised waste management solutions, MSMEs are finding space in emerging value chains. 

Participation in government-backed initiatives, such as green finance schemes and incentives for cleaner production, makes it easier for small businesses to transition towards sustainable models. With India aiming for 500 GW of non-fossil fuel capacity by 2030, MSMEs are positioned to play an integral role in delivering affordable, localised green solutions.

D. Services & Knowledge Economy

Finally, the expansion of the services sector is unlocking global prospects. From logistics and fintech to SaaS and consulting, MSMEs are increasingly contributing to India’s projected ₹8,68,700 crore (US$ 100 billion) software exports, offering scalable, tech-enabled growth avenues. MSMEs in software development, consulting, and digital solutions are also benefiting from expanding domestic and global markets for knowledge-based exports.

Looking Ahead: Viksit Bharat and Role Of MSME Towards It

As India works towards its Viksit Bharat 2047 vision, MSMEs are expected to play a central role in shaping a more inclusive, competitive, and innovation-led economy. With over 63 million enterprises supporting jobs and local entrepreneurship, strengthening this sector is essential for long-term progress.

To create an enabling environment, the government has expanded access to credit through collateral-free loans of up to ₹5 crore and a ₹50,000 crore Self-Reliant India Fund for equity support. Schemes like PMEGP offer margin subsidies to first-time entrepreneurs, while 18 Technology Centres are helping MSMEs modernise operations across sectors, from auto parts to fragrances.

Alongside industrial growth, the green transition is also being supported. The MSE-GIFT and MSE-SPICE schemes aim to lower the cost of adopting clean technologies and promote circular economy practices through subsidies and concessional finance.

Going forward, the ability of MSMEs to scale sustainably will depend on their agility to formalize, digitize, upskill, and plug into global value chains. While steady policy support and stronger market linkages set the foundation, MSMEs can step beyond survival and into scale with structured financial support, insight-led planning, and strong execution.

As enterprises explore new opportunities in manufacturing, clean energy, services, and exports, institutions like Protium Finance are fueling the transformation. Trusted NBFCs such as Protium are supporting the New India with tailored financial solutions for the evolving needs of MSMEs. In a landscape shaped by reform and ambition, the opportunity is clear, and now is the time to harness it strategically.

India’s reform roadmap for 2025 reflects a comprehensive effort to reduce business friction, unlock efficiencies systematically, and promote growth through coordinated policy shifts across infrastructure, taxation, governance, and skilling. For MSMEs, these reforms are opening new doors to scale operations, integrate into future-ready sectors, and enhance competitiveness.

Major pillars of this reform are:

A. Infrastructure Development: Creating Scalable Pathways for MSMEs

India’s infrastructure upgrade is reshaping how businesses connect, operate, and deliver. With more than 9,288 projects under the National Infrastructure Pipeline between 2020 and 2025, and ₹31 trillion worth already completed by early 2025, logistics bottlenecks are being addressed on a large scale. Plus, the PM Gati Shakti Yojana, launched in 2021, has facilitated coordination across ministries, resulting in improved freight planning, multimodal transport integration, and faster project execution.

For MSMEs, these efforts translate into more reliable market access, reduced supply chain disruptions, and cost savings, particularly for those in industrial clusters or remote areas. Plug-and-Play industrial parks have expanded to over 100 cities as of 2024, providing ready-to-use facilities that reduce capital expenditure and speed up operational readiness. The National Monetisation Pipeline (2022–25) targets ₹3.85 trillion from asset monetisation, reinvesting proceeds into fresh infrastructure projects that keep growth momentum steady. Reducing logistics costs from 14% to 8% of GDP (targeted by 2030) will enhance export competitiveness and delivery timelines for MSMEs.

B. Finance and Taxation Reforms:

In recent years, a series of financial and taxation reforms have been introduced with a strong focus on easing credit access, reducing compliance burdens, and encouraging formalization among small businesses.

• The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) has doubled its coverage from ₹5 crore to ₹10 crore, potentially unlocking ₹1.5 lakh crore in fresh credit. A new Micro Enterprise Card (ME-Card), offering micro units credit up to ₹5 lakh, is expected to benefit 10 lakh enterprises in its first year. These measures aim to ease access to working capital for small businesses.
• The Emergency Credit Line Guarantee Scheme (ECLGS), though now closed, supported over 1.15 crore borrowers during the pandemic. It prevented widespread closures and improved repayment behavior among MSMEs, earning recognition from institutions like the RBI and World Bank.
• On the taxation front, the introduction of presumptive taxation under Section 44AD eased filing for units with turnover up to ₹2 crore. Relaxations like section 80J exemption, reduced Tax rate under 115BA for eligible MSMEs, tax holidays for eligible startups and incentives for digital transactions further boost financial flexibility.
• GST has been a mixed experience. While over 1.36 crore MSMEs are registered under the GST regime (as of July 2023), compliance complexities, high rates, delayed input tax credits, and uneven slabs strain MSMEs. Recent reforms aim to simplify GST with fewer slabs, quarterly filings, and better portal efficiency. Later, to ease GST registration, the CBIC’s 2024 directive reduced unnecessary scrutiny, set strict timelines, and required minimal documents, improving predictability for MSMEs.
• To improve recovery rates and ensure timely resolution of distressed assets, the Insolvency and Bankruptcy Code (IBC) was introduced in 2016. Since its inception, 8,308 companies have entered the process and the resolution rate improved from 15% to 32.1% as of FY2025. 

Together, these financial and taxation reforms reflect a broader policy shift towards enabling MSME resilience and growth. While the outcomes vary across different segments of the sector, the overall direction indicates a stronger ecosystem where small businesses are better equipped to access capital, comply with regulations, and contribute meaningfully to India’s economic trajectory.

C. Digital Governance and India Stack:

Digital governance under the Digital India Programme has significantly improved transparency, efficiency, accountability in government-business interactions, streamlining digital tax filing and compliance.

At the core of this digital transformation is the India Stack Initiative 2.0, which is revolutionizing how MSMEs access credit, markets, and business networks. A flagship component of this initiative is the Open Network for Digital Commerce (ONDC), an open and inclusive digital marketplace that removes the dominance of closed ecosystems. As of 2024, ONDC hosts 535,000 sellers across 1,200 cities, with MSMEs accounting for 84% of sellers and contributing 56% of total orders, thereby enhancing their visibility and business opportunities. 

To further drive adoption, the Ministry of MSME has launched the MSME Trade Enablement and Marketing (MSME-TEAM) initiative, targeting onboarding 500,000 MSMEs onto the ONDC platform. These digital solutions streamline operations and foster greater financial inclusion by helping MSMEs create reliable digital financial footprints.

Alongside this works the National Single Window System (NSWS), a digital platform launched to centralize and expedite business approvals and clearances from both central and state governments. NSWS offers centralized access to 643 central and 6,113 state-level approvals, reducing the time and cost of business approvals and creating an MSME-friendly environment.

Recognizing the evolving scale and ambitions of MSMEs in the Union Budget 2025, the government raised MSME investment thresholds by 2.5 times and doubled turnover limits, thereby expanding eligibility and enabling more enterprises to benefit from government schemes and contracts. 

D. Skilling, R&D, and Innovation Support for MSMEs:

A skilled workforce and a strong culture of innovation are essential to the competitiveness and resilience of MSMEs. To support this, the government has introduced several targeted initiatives aimed at enhancing technical capabilities and facilitating the adoption of advanced technologies across the MSME sector.

• Tech Skilling for MSMEs: FutureSkills Prime, a NASSCOM-backed initiative, has been equipping professionals with expertise in AI, cybersecurity, and cloud computing through certified courses. This effort has improved employability; the India Skills Report 2025 recorded a rise to 54.81%, up from 51.25% in 2024.
• R&D & Innovation Investments: India ranks 6th globally in R&D investments (PPP terms). Gross Expenditure on R&D more than doubled from ₹60,196.75 crore in 2010-11 to ₹127,380.96 crore in 2020-21. To further accelerate innovation, academia-industry collaboration has been expanding, supported by strengthened Intellectual Property (IP) frameworks.
• IP & Startup Incubation Support: The MSME Innovative Scheme, launched in March 2022, has been providing assistance to startups with incubation, design development, and IP registration. By 2025, 697 Host Institutes had been approved to support idea incubation, while MSME Hackathon 4.0 (Sept. 2024) awarded ₹15 lakh grants to 500 young innovators.
• Industry 4.0 & Digital Transformation: To ease the integration of digital technologies and enable Industry 4.0 adoption, the government is upgrading its network of Technology Centres into India SME Industry 4.0 Competence Centres. These operate through a hub-and-spoke model, offering access to AI, IoT, and automation, ensuring MSMEs across regions stay competitive.

Challenges That Need Attention:

Despite ongoing reforms, key bottlenecks continue to affect MSME growth and competitiveness:

1. Credit Access Remains Constrained

A ₹30 lakh crore credit gap still exists, especially for rural and women-led MSMEs. Strict eligibility norms and collateral requirements push many towards informal and high-cost lenders.

2. Weak Infrastructure in Rural Areas

Poor transport, irregular electricity, and lack of modern facilities hamper productivity and digital adoption for MSMEs in remote regions, impacting sectors like agro-processing and handicrafts.

3. Regulatory and Compliance Burden

Complex GST norms, labor laws, and environmental regulations consume significant time and resources. Many MSMEs cite difficulties in filing returns and availing timely Input Tax Credit (ITC).

4. Digital Adoption Gaps

While 68% of MSMEs acknowledge the value of digital technology, adoption remains low in Tier II/III cities due to high costs, limited awareness, and lack of technical support.

5. Skilling and Workforce Mismatch

According to the India Skills Report 2025, employability has improved to 54.81%, but gaps remain as a large share of workers remain low- or semi-skilled, slowing tech integration and productivity gains.

6. Low Investment in Marketing

Limited budgets for branding and advertising prevent many MSMEs from standing out in competitive markets, reducing visibility and profitability in both domestic and export segments.

Key Growth Opportunities for MSMEs in 2025

A. Manufacturing & Exports

India’s focus on expanding domestic production through the ‘Make in India’ initiative, along with global supply chain shifts under the China+1 strategy, is creating space for MSMEs to contribute more actively in electronics, electric vehicles, defence, and renewable energy. 

With the manufacturing Purchasing Managers’ Index (PMI) holding steady above 55 since early 2024, business activity remains on an upward trend. This environment is encouraging MSMEs to expand capacity, invest in technology, and integrate with larger value chains, both domestically and for exports. Plus, PLI schemes for 14 key sectors, with an outlay of ₹1.97 lakh crore, aim to boost India’s manufacturing and exports. 

B. Digital Transformation

Complementing this manufacturing drive is the growing adoption of digital tools. Through SME 4.0 Competence Centres, MSMEs can access subsidised technologies and skilling programs to adopt AI, IoT, and automation. For many businesses in Tier II and III cities, practical solutions like mPOS systems are becoming popular for streamlining payments, maintaining digital records, and accessing customer insights.

C. Green and Sustainable Business

At the same time, India’s clean energy transition is opening new value chains. Over 81.9 lakh registered MSMEs are now engaged in green sectors such as solar energy, recycling, and water conservation (MSME Ministry, 2024), reflecting a growing shift toward climate-conscious operations. From manufacturing solar components to offering decentralised waste management solutions, MSMEs are finding space in emerging value chains. 

Participation in government-backed initiatives, such as green finance schemes and incentives for cleaner production, makes it easier for small businesses to transition towards sustainable models. With India aiming for 500 GW of non-fossil fuel capacity by 2030, MSMEs are positioned to play an integral role in delivering affordable, localised green solutions.

D. Services & Knowledge Economy

Finally, the expansion of the services sector is unlocking global prospects. From logistics and fintech to SaaS and consulting, MSMEs are increasingly contributing to India’s projected ₹8,68,700 crore (US$ 100 billion) software exports, offering scalable, tech-enabled growth avenues. MSMEs in software development, consulting, and digital solutions are also benefiting from expanding domestic and global markets for knowledge-based exports.

Looking Ahead: Viksit Bharat and Role Of MSME Towards It

As India works towards its Viksit Bharat 2047 vision, MSMEs are expected to play a central role in shaping a more inclusive, competitive, and innovation-led economy. With over 63 million enterprises supporting jobs and local entrepreneurship, strengthening this sector is essential for long-term progress.

To create an enabling environment, the government has expanded access to credit through collateral-free loans of up to ₹5 crore and a ₹50,000 crore Self-Reliant India Fund for equity support. Schemes like PMEGP offer margin subsidies to first-time entrepreneurs, while 18 Technology Centres are helping MSMEs modernise operations across sectors, from auto parts to fragrances.

Alongside industrial growth, the green transition is also being supported. The MSE-GIFT and MSE-SPICE schemes aim to lower the cost of adopting clean technologies and promote circular economy practices through subsidies and concessional finance.

Going forward, the ability of MSMEs to scale sustainably will depend on their agility to formalize, digitize, upskill, and plug into global value chains. While steady policy support and stronger market linkages set the foundation, MSMEs can step beyond survival and into scale with structured financial support, insight-led planning, and strong execution.

As enterprises explore new opportunities in manufacturing, clean energy, services, and exports, institutions like Protium Finance are fueling the transformation. Trusted NBFCs such as Protium are supporting the New India with tailored financial solutions for the evolving needs of MSMEs. In a landscape shaped by reform and ambition, the opportunity is clear, and now is the time to harness it strategically.