State PCS - Madhya Pradesh (MP PCS)

• 23 Sep 2025

MSME Sector Growth Declines in MP

Why in News?

The growth of the MSME sector in Madhya Pradesh has seen a decline over the past two years, with fewer registrations and increased shutdowns, highlighting challenges for the state's economic development.

Key Points

• Decline in MSME Registrations: According to the Union Government's data, MSME registrations in Madhya Pradesh under the Udyam Registration Portal (URP) decreased in 2024-25 compared to the previous year. 
  • In 2024-25, a total of 231,164 MSMEs were registered in MP, a decline from 249,009 registrations in 2023-24. 
  • This reduction marks a downward trend in the growth of new MSMEs in the state.
• Increased Shutdowns and De-registrations: The number of MSMEs shutting down in MP has also risen sharply. 
  • In 2024-25, 1,961 MSMEs were de-registered due to shutdowns, compared to just 552 in 2023-24. 
• Sector-Wise Decline: The widespread decline across manufacturing, services, and trading indicates systemic challenges impacting various industries in the state, necessitating targeted interventions.
• Reasons: The Union Government has cited reasons for the deregistration of MSMEs, including changes in ownership, business location, and other operational factors.
• Government’s Response and Initiatives:
  • Madhya Pradesh MSME Development Policy 2025: This policy aims to bolster the growth of MSMEs by providing a conducive environment for business operations, with a focus on enhancing productivity and innovation.
  • Chief Minister's Vision for MSMEs: On International MSME Day (27 June), the Chief Minister highlighted MSMEs' vital role in shaping MP's socio-economic future, with a vision to provide self-employment or employment for at least one family member in every household.

Udyam Registration Portal (URP) and Udyam Assist Platform (UAP)

• To address registration challenges, the Ministry of MSME launched the Udyam Registration Portal (URP) on 1st July 2020, aimed at simplifying the process for MSMEs. 
  • Facilitates ease of registration for MSMEs, making them eligible for government benefits, including participation in government procurement and access to schemes and subsidies.
• The Udyam Assist Platform (UAP) was introduced on 11th January 2023 to assist informal micro-enterprises (IMEs) in registering, especially those exempt from GST and lacking a PAN.
  • Supports IMEs by providing a platform for them to register and gain access to similar benefits, thus enhancing the ease of doing business.