2026, Vol. 7, Issue 2, Part C

The Micro, Small, and Medium Enterprises (MSMEs) sector serves as a critical pillar of both India’s and Maharashtra’s economies, driving employment, innovation, and industrial growth. As of September 2025, India hosts over 6.82 crore Udyam-registered MSMEs, contributing approximately 30% to GDP and 45% to exports, while Maharashtra alone accounts for 47.78 lakh units, employing over 10 million people. This study examines the structural and economic significance of MSMEs in Maharashtra, highlighting sectoral contributions across manufacturing, services, agro-processing, pharmaceuticals, and automotive industries. Key factors influencing MSME growth include policy support through Udyam registration, PM Vishwakarma, and budget reforms; enhanced credit access via formal financing, credit guarantees, and MSME Credit Cards; and skill development and innovation initiatives. Challenges such as limited access to finance, skill gaps, regulatory compliance, and competition from larger firms are also analyzed. Using a descriptive research methodology, the study integrates official data from the MSME Annual Report 2024–25, state government publications, and financial institutions to provide a comprehensive understanding of MSME dynamics. The findings underscore the pivotal role of MSMEs in economic development, social empowerment, and sustainable industrial growth, particularly in Maharashtra, and provide insights for policy formulation and strategic interventions to foster sectoral expansion.