President Droupadi Murmu delivered a powerful address on MSME Day 2025 in New Delhi, shining a spotlight on the pivotal role played by Micro, Small and Medium Enterprises (MSMEs) in India’s economic landscape. Her speech was more than ceremonial; it was a clarion call for action, innovation, and support for the sector that fuels India’s aspirations of becoming a global economic powerhouse.
MSMEs: The Unsung Heroes of India’s Economy
Standing at the helm of the celebrations, President Murmu characterized the MSME sector as the bedrock of the nation’s economic development. With over 63 million enterprises scattered across urban hubs and rural expanses, MSMEs collectively contribute nearly 30% to India’s Gross Domestic Product (GDP) and employ more than 110 million people.
But numbers alone do not capture the spirit of MSMEs. President Murmu highlighted how these enterprises often serve as laboratories for innovation, where grassroots solutions are crafted to tackle local challenges. Whether it’s developing low-cost medical devices in small-town workshops or pioneering sustainable manufacturing processes in rural clusters, MSMEs infuse the economy with agility and creativity.
“MSMEs not only add to our economic strength but also ensure that prosperity reaches the remotest corners of our country,” President Murmu emphasized in her address, speaking to a packed hall of entrepreneurs, policymakers, and industry leaders.
Beyond pure economics, President Murmu underscored the sector’s unmatched contribution to inclusive development. MSMEs, she explained, are uniquely positioned to generate employment at relatively low capital costs, making them ideal vehicles for job creation in rural and backward regions.
In states like Uttar Pradesh, Bihar, and Odisha, MSMEs are often the mainstay of local economies. Small units producing textiles, handicrafts, processed foods, and machinery parts have become lifelines for thousands of families. These enterprises provide meaningful work where large industries seldom venture, helping curb migration to already congested urban centers.
President Murmu praised the decentralized model of growth inherent in the MSME sector. By enabling economic activity outside traditional metropolitan hubs, MSMEs empower weaker sections of society, ensuring that the benefits of development are more evenly distributed.
Challenges: The Roadblocks on the Path to Success
Yet, President Murmu did not shy away from acknowledging the challenges that continue to plague MSMEs. Her candid observations reflected a deep understanding of the sector’s struggles:
- Limited Access to Finance: Despite numerous government schemes, many MSMEs still find it difficult to secure affordable credit. Traditional banks remain cautious, often demanding stringent collateral that small entrepreneurs cannot provide.
- Competition from Large Corporations: MSMEs often face an uneven playing field, where big companies wield superior technology, marketing muscle, and economies of scale.
- Technological Obsolescence: Many small units rely on outdated machinery and processes, hindering their competitiveness in a globalized market.
- Raw Material Shortages: Global supply chain disruptions have made it challenging for MSMEs to maintain steady production, especially in manufacturing sectors.
- Skilled Workforce Shortage: As technology evolves, MSMEs struggle to find workers trained in modern techniques, digital tools, and sustainable practices.
- Market Access and Delayed Payments: For countless MSMEs, securing customers beyond local markets remains an uphill battle. Payment delays from larger buyers strain cash flows, sometimes pushing small businesses to the brink of closure.
These challenges, President Murmu noted, are interlinked and demand multi-pronged solutions. Addressing them is essential for India’s vision of a $5 trillion economy.
Policy Measures: Government’s Strong Hand of Support
Despite the obstacles, President Murmu expressed optimism, highlighting that the Government of India has rolled out significant reforms and initiatives to revitalize the MSME ecosystem. She specifically praised measures such as:
- Revised MSME Classification: The redefinition of MSMEs based on investment and turnover has brought more enterprises under the umbrella of government benefits. This move helps smaller firms compete on fairer terms and access support previously out of reach.
- Enhanced Credit Availability: Schemes like the Emergency Credit Line Guarantee Scheme (ECLGS) provided vital lifelines during the pandemic, enabling many businesses to survive economic shocks.
- Procurement Policy: A mandate requiring central ministries, departments, and public sector enterprises to procure at least 35% of their annual requirements from micro and small enterprises is creating tangible market opportunities.
- PM Vishwakarma Yojana: A flagship initiative for the skill development of traditional artisans, helping them upgrade their expertise and integrate into the modern economy.
These interventions, President Murmu remarked, have triggered a surge in the number of registered MSMEs. Data from the Udyam Registration portal shows a rapid climb in new enterprises coming forward to formalize their operations.
“It is encouraging to note that these initiatives have led to a rapid increase in the number of registered MSMEs in the country,” President Murmu said, exuding confidence about the sector’s future.
In an increasingly digital world, the MSME sector cannot afford to remain analog. President Murmu commended the launch of the Online Dispute Resolution (ODR) Portal for MSMEs, designed to resolve issues like delayed payments—a persistent thorn in the side of small businesses.
Digital tools, she suggested, could revolutionize the way MSMEs operate. From e-commerce platforms that connect small producers to customers worldwide to digital payments that ensure timely transactions, technology offers a pathway to sustainability and scale.
Moreover, initiatives such as the Digital MSME scheme encourage enterprises to adopt cloud computing, digital marketing, and modern ERP systems. President Murmu urged MSMEs to embrace these changes, asserting that digital readiness is no longer optional—it’s essential for survival in the global economy.
The Green Imperative: Sustainable MSME Practices
While economic contribution remains paramount, President Murmu turned attention to the environmental responsibilities of the MSME sector. MSMEs account for a significant share of India’s energy consumption and emissions. Many still operate with legacy machinery, consuming excessive power and generating high levels of pollution.
“Promoting eco-friendly practices within MSMEs is not just good for business—it is vital for the planet,” President Murmu asserted, intertwining environmental stewardship with economic growth.
The push towards green technologies is gaining traction, supported by government subsidies for energy-efficient machinery, waste management solutions, and renewable energy adoption. Solar-powered workshops, biofuel-based production, and water-saving technologies are no longer distant concepts but growing realities among progressive MSMEs.
Investing in sustainable practices not only improves competitiveness but also positions MSMEs to tap into global markets increasingly demanding environmentally responsible products. President Murmu emphasized that MSMEs have a crucial role to play in helping India meet its climate goals under the Paris Agreement.
Women Entrepreneurs: Driving India’s Future
One of the most resonant moments in President Murmu’s speech was her tribute to the rising tide of women entrepreneurs in the MSME sector. She highlighted how the involvement of women in entrepreneurship fosters a more balanced and resilient economy.
Women-owned MSMEs, though still a fraction of the total, are steadily growing in number and influence. From small-scale manufacturing units to digital startups, women are breaking stereotypes and building successful enterprises despite facing societal and financial hurdles.
“This is the time for young women to lead from the front,” President Murmu urged, encouraging women to embrace entrepreneurship as a path to self-reliance and empowerment.
Support structures like the Stand-Up India Scheme, Women Entrepreneurship Platform, and specialized financial products are helping bridge the gender gap. Yet, President Murmu emphasized that more must be done to ensure women have equal access to capital, markets, and mentorship.
The global stage offers immense opportunities for Indian MSMEs, especially in light of shifting geopolitical dynamics. Rising interest in “China Plus One” strategies is prompting global corporations to seek alternative suppliers, and India’s MSMEs are uniquely positioned to capture this demand.
Sectors such as textiles, pharmaceuticals, engineering goods, and handicrafts hold significant export potential. President Murmu stressed that Indian MSMEs must enhance quality standards, adopt international certifications, and ensure timely deliveries to become trusted partners in global value chains.
Government support through initiatives like the Market Access Initiative (MAI) and export facilitation schemes is helping MSMEs explore international markets. However, challenges such as language barriers, complex regulations, and logistic hurdles still need to be addressed.
As President Murmu concluded her address, her message was clear: while MSMEs have always been at the heart of India’s economy, the time has come to elevate their role even further. The sector’s resilience, creativity, and ability to adapt are unmatched assets in a rapidly changing world.
“The journey of MSMEs is, in many ways, the journey of India itself,” she observed. “Their growth will define the contours of our nation’s future.”
Her speech was both a tribute and a challenge—to policymakers, entrepreneurs, financiers, and society at large. The success of the MSME sector is not merely a matter of economic metrics but a reflection of India’s commitment to inclusive and sustainable growth. President Droupadi Murmu’s passionate advocacy for MSMEs on MSME Day 2025 underscores a fundamental truth: these enterprises are not just economic engines but symbols of hope, resilience, and innovation. While they face formidable challenges, the sector’s potential to transform lives, drive sustainability, and position India as a global economic leader remains indisputable. As India charts its course towards becoming a $5 trillion economy, empowering the MSME sector will be crucial. With the right mix of policy support, technological adoption, and social inclusion, MSMEs can indeed become the backbone of a new, inclusive economic order, taking India to unprecedented heights on the world stage.
