The total number of jobs reported by micro, small, and medium enterprises (MSMEs) registered with the government has now exceeded 23 crore. According to the Ministry of MSME’s official data, 5.49 crore MSMEs, registered on the government’s Udyam portal, have collectively reported 23.14 crore jobs. This represents a significant increase from the 13.15 crore jobs reported by 2.33 crore MSMEs in August of the previous year, with 10 crore new jobs added over the past 15 months.
Breakdown of Job Creation by MSMEs
The reported employment figures include:
- 2.84 crore jobs from 2.38 crore informal micro units, which have been registered through Udyam certification.
- 5.23 crore jobs held by women employees across the registered MSMEs.
Additionally, the breakdown of the registered MSMEs is as follows:
- 5.41 crore micro enterprises
- 7.27 lakh small enterprises
- 68,682 medium enterprises
Comparison with Udyam Portal Launch and National Data
At the time of the Udyam portal’s launch in July 2020, the recorded number of MSME jobs stood at 2.8 crore. Over the past few years, MSME sector employment has seen substantial growth.
The National Sample Survey (2015-16), referenced in the Ministry of MSME’s annual reports, states that the MSME sector in India, which consists of 6.33 crore unincorporated non-agriculture units, has generated 11.10 crore jobs across both rural and urban areas. The distribution of these jobs is as follows:
- 36.04 lakh jobs in manufacturing
- 0.07 lakh jobs in non-captive electricity generation and transmission
- 38.72 lakh jobs in trade
- 36.28 lakh jobs in other services
Job Creation in the Country as a Whole
According to the Reserve Bank of India (RBI), 4.67 crore jobs were generated in FY24, bringing the total number of jobs in India to 64.33 crore. The agriculture sector continues to play a significant role, accounting for over 45% of the total employment, which translates to approximately 25-29 crore jobs in agriculture, based on the Economic Survey 2023-24.
Job Loss Due to MSME Closures
While the number of MSME jobs has increased, there have also been job losses due to the closure of several MSMEs. As per data provided by MSME Minister Jitan Ram Manjhi in Parliament in July 2024, a total of 49,342 MSMEs have shut down since 2020, resulting in the loss of 3.17 lakh jobs. The reasons for the closure or deregistration of these units include changes in ownership, cases where certificates were no longer required, duplicate registrations, and other such factors.
Minister’s Statement on MSME Closures
In response to questions in the Lok Sabha, Minister Jitan Ram Manjhi explained that the MSMEs were de-registered or marked as closed on the Udyam portal due to various reasons. He highlighted that the reasons for closure or deregistration include changes in company ownership, the cessation of the need for certification, and other procedural factors.
This dynamic reveals both the growth and challenges facing the MSME sector in India, as it continues to be a key contributor to employment generation in the country.
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