Economic Survey 2026 Highlights MSMEs as Key Drivers of Manufacturing, Exports and Employment

Last updated: 30 January 2026


Quick Summary
The Economic Survey 2025-26 highlights Micro, Small, and Medium Enterprises (MSMEs) as the backbone of India's industrial economy. These businesses are significant contributors, accounting for 35.4% of manufacturing, 48.58% of exports, and 31.1% of GDP. The survey also notes that MSME credit is the primary driver of industrial credit growth, with government initiatives and funds like the Self-Reliant India Fund supporting their expansion and global integration.

MICRO, SMALL, AND MEDIUM ENTERPRISES FORM THE BACKBONE OF INDIA'S INDUSTRIAL ECONOMY: ECONOMIC SURVEY 2025-26 MSMEs ACCOUNT FOR 35.4 PER CENT OF MANUFACTURING, 48.58 PER CENT OF EXPORTS, AND 31.1 PER CENT OF GDP MSME CREDIT REMAINED THE PRIMARY DRIVER OF INDUSTRIAL CREDIT GROWTH DURING H1FY26 THE
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FAQ :

The MSME sector accounts for approximately 35.4 per cent of India's manufacturing.

MSMEs are responsible for around 48.58 per cent of India's total exports.

The MSME sector contributes about 31.1 per cent to India's Gross Domestic Product (GDP).

MSME credit remained the primary driver of industrial credit growth during H1FY26, significantly outpacing the growth in large industry credit.

As of 30th November 2025, the Self-Reliant India Fund had assisted 682 MSMEs with investments worth Rs 15,442 crore.

Globally, MSMEs constitute about 90 per cent of businesses and are responsible for over 50 per cent of total global employment.




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Finance news reporter covering taxation, GST, income tax, business compliance, and economy updates. I simplify complex financial topics into easy-to-understand articles for professionals, taxpayers, and business owners on leading finance and tax platforms.

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