MSMEs merchandise export share increased to 45.7 % in FY24: SIDBI report

Current Context: The SIDBI report, titled ‘Understanding Indian MSME Sector: Progress and Challenges’, was released on May 13, 2025 and provides a comprehensive analysis of MSME growth, challenges, and opportunities.

Key Findings:

• Export Growth: MSMEs’ merchandise export share increased from 43.6% in FY23 to 45.7% in FY24.
• Formalization: MSME registrations surged from 2.5 crore (March 2024) to over 6.2 crore (March 2025), reflecting sector expansion.
• Credit Challenges: MSMEs face a ₹30-lakh crore credit gap, with women-owned enterprises experiencing the highest deficit at 35%.
• Digital Adoption: 90% of MSMEs accept digital payments, but only 18% use digital lending platforms, highlighting fintech growth potential.
• Women Entrepreneurship: Women-owned MSMEs increased from 22.9% (FY23) to 26.2% (FY24), yet 41% cite credit access as a major challenge.
• Skilled Labor Shortage: 25% of MSMEs struggle with hiring skilled workers, particularly in defense, garments, hospitality, and ceramics.
• Sustainability Efforts: 31% of MSMEs use energy-efficient systems, while 21% rely on renewable energy, though 33% cite limited awareness as a barrier.

Question:

Q.1 According to the SIDBI report released in May 2025, what was the share of MSMEs in India’s merchandise exports in FY24?
a) 43.6%
b) 45.7%
c) 44.8%
d) 46.3%

Answer: b) The report noted that the MSMEs' merchandise export share grew from 43.6% in FY23 to 45.7% in FY24, showcasing their increasing contribution to international trade.