Micro, Small, and Medium Enterprises (MSMEs) in India play a pivotal role in the country's industrial and economic landscape. These enterprises are involved in the processing, production, and trading of goods and commodities across a wide range of sectors, including manufacturing & services. MSMEs are crucial for their contribution to India's economic growth, accounting for approximately 30% of the nation's GDP. They are also a key driver of India's export economy, contributing over 45% to the country's total exports, demonstrating their vital role in promoting India’s global trade footprint.

Invest India estimates the Indian MSME sector will achieve a market size of $1 trillion by 2028. This growth will be driven by increasing domestic and global demand, supportive government initiatives, and technological advancements boosting efficiency and competitiveness. These factors position MSMEs as key contributors to economic development and significant drivers of future growth in India.

MSMEs are categorised into three classifications based on the scale of their operations: micro, small, and medium enterprises. This classification helps ensure that enterprises of different sizes receive targeted benefits and support from government policies, financial institutions, and development programs.