Concept2 stories
MSME sector
In one line: Micro, small and medium enterprises are classified by investment and turnover and employ a large share of India's workforce.
Classification (revised in 2025)
Micro: investment up to ₹2.5 crore and turnover up to ₹10 crore; small: up to ₹25 crore and ₹100 crore; medium: up to ₹125 crore and ₹500 crore.
Why they matter
They account for a large share of manufacturing output and exports.
Pressures
Access to credit, delayed payments, compliance costs and input prices, including those raised by QCOs.
Where to go next
- Bureau of Indian Standards: India's standards body
- Non-tariff barriers: Standards as protection
MSME sector in the news
- Quality control orders and India's manufacturing growth 24 September 2026
Who bears the cost
- PM Vishwakarma completes three years 18 September 2026
Where artisans fit in
Previous-year questions on this
- 2025 · GS3 · 10 marks What are the challenges before the Indian economy when the world is moving away from free trade and multilateralism to protectionism and bilateralism? How can these challenges be met?
- 2023 · GS3 · 10 marks Faster economic growth requires increased share of the manufacturing sector in GDP, particularly of MSMEs. Comment on the present policies of the Government in this regard.
- 2023 · GS2 · 15 marks Skill development programs have succeeded in increasing human resources supply to various sectors. In the context of the statement analyze the linkages between education, skill and employment.
- 2017 · GS3 · 15 marks "Industrial growth rate has lagged behind in the overall growth of Gross-Domestic-Product (GDP) in the post-reform period" Give reasons. How far the recent changes in Industrial Policy are capable…
- 2015 · GS3 · 12.5 marks 'Success of 'Make in India' programme depends on the success of 'Skill India' programme and radical labour reforms.' Discuss with logical arguments.