According to the Ministry of MSME, approximately 7.83 crore businesses were registered on the Udyam platforms as of February 2026, demonstrating the success of India’s efforts to formalize its MSME sector.
Due to updated classification standards based on investment and turnover that were implemented in 2020, registrations on the Udyam Registration Portal and Udyam Assist Platform have increased dramatically from 0.79 crore in FY22. Increased participation from the manufacturing, services, and trading sectors in both urban and rural areas is reflected in the growth.
It is anticipated that formalization will make doing business easier and give small businesses better access to financing, government assistance, and market prospects.
The Prime Minister’s Employment Generation Programme, the Credit Guarantee Scheme, and PM Vishwakarma are just a few of the efforts the government has implemented to support this expansion. Competitiveness and sustainability are also being supported by technology-driven initiatives like ZED certification and MSME Champions.
The Union Budget 2026–2027 includes additional steps to improve loan availability, such as integration with GeM platforms, invoice discounting supported by guarantees, and mandatory TReDS settlement for CPSEs.
These actions are anticipated to improve credit flow, alleviate working capital issues, and encourage MSME-led expansion in exports and manufacturing.
