Eco Survey 2026: 35.4% of manufacturing, 48.58% of exports, 31.1% of GDP, that's MSME for you

Kolkata: Are small and medium the new maximum -- at least in the industrial canvas of the country? Well, there is less rhetoric in the question than seems apparent at first. The Economic Survey presented on Thursday, Jan 29 in Parliament has revealed figures that suggest the maximalist role of the MSME sector. They now account for 35.4% of manufacturing, 48.58% of exports and as much as 31.1% of GDP.

The Economic Survey 2025-26 has described the MSME sector as the "backbone of India’s industrial economy". Detailing its contribution to manufacturing, exports and GDP, the survey said it is a huge employer as well. As many as 32.82 crore individuals are employed in more than 7.47 crore businesses. This makes the MSME sector the second biggest generator of employment after agriculture.

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The development of the MSMEs in India is actually in line with global trends. "Globally, MSMEs make up about 90 per cent of businesses and are responsible for over 50 per cent of the total global employment," the survey mentioned. It also stated that since the manufacturing sector in the country is aiming for a bigger level of integration with at the global level, the MSME sector’s role will be critical in making India a future node in the worldwide supply chain canvas. Besides, it will also be a key driver of ensuring local value addition and enduring inclusive regional growth.

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The Economic Survey also mentioned that credit to this sector has become the primary driver of credit to the industry during the April-September period of 2025. "The overall MSME credit growth year-on-year (Y-o-Y) has significantly outpaced the Y-o-Y growth observed in large industry credit," said the survey. It pointed out that the Self-Reliant India Fund has assisted as many as 682 MSME units and the investment involved is Rs 15,442 crore (as in end of Nov 2025).

The fund was designed to inject Rs 50,000 crore in the form of equity funding in MSMEs. The government is trying to further the cause of innovation, incubation, design interventions and IPR protection with the help of this fund.