Indian MSMEs Show Remarkable Resilience: Exports Triple in 5 Years

Indian Micro, Small and Medium Enterprises (MSMEs) have once again demonstrated their resilience and adaptability in the face of global disruptions. A recent study by SMERA (SME Rating Agency of India) reveals that despite challenges such as geopolitical tensions, tariff wars, and the COVID-19 pandemic, India’s exporting MSMEs have grown nearly threefold over the last five years. This growth not only highlights the entrepreneurial strength of the sector but also its increasing role in shaping India’s economic future.

According to the study, the number of MSME exporters has risen sharply, while export volumes too have witnessed significant growth.

Key findings of the report:

• MSME exporters increased from 52,849 in 2020–21 to 1,73,350 in 2024–25.

• Total exports from the sector jumped from ₹3.95 lakh crore to ₹12.39 lakh crore during the same period.

• 91% of exporting units are micro and small enterprises, contributing nearly 60% of MSME exports.

• MSMEs supply over 6,000 diverse products to both domestic and global markets.

Commenting on the findings, Sankar Chakraborti, Chairman of SMERA and MD & CEO of Acuité Ratings & Research, said: “While international conflicts and tariff wars are reshaping trade, India’s MSMEs have shown incredible determination in exploring global markets. Their strength lies not in size but in sheer numbers.”

The contribution of MSMEs to India’s Gross Value Added (GVA) has also strengthened, rising from **27.3% in 2020–21 to 30.1% in 2022–23. This confirms the sector’s role as a key pillar in powering the Indian economy.

Even amid global supply chain disruptions, MSMEs have acted as a stabilizing force for India. Without them, experts warn that the country could lose a third of its GDP, two-thirds of its jobs, and nearly half of its foreign exchange earnings. Their presence spans across critical industries including food processing, auto components, pharmaceuticals, textiles, electronics, defence, engineering goods, handicrafts, and leather, while also playing a strong role in services such as IT, education, healthcare, logistics, tourism, and e-commerce.

However, the report also highlights the persistent challenges that continue to limit MSMEs from scaling further.

Key challenges faced by MSMEs:

• Limited access to working capital and delayed payments that restrict reinvestment.

• High costs of land, logistics, and electricity, which reduce profitability.

• Regulatory hurdles and compliance burdens that discourage expansion.

Despite government efforts to improve ease of doing business, many small enterprises still struggle with these bottlenecks. Yet, the overall trend remains clear—India’s MSMEs are not just surviving global disruptions, but emerging stronger, more innovative, and increasingly vital to the country’s growth journey.