National Small Industry Day 2025 – August 30

India observes National Small Industry Day (NSID) on 30th August 2025,  to recognize the pivotal role of Small-Scale Industries (SSIs) and Micro, Small & Medium Enterprises (MSMEs) in economic growth, employment generation, and inclusive development.

Background:

Policy Launch: On 30 August 2000, then Prime Minister (PM) Atal Bihari Vajpayee announced a comprehensive policy package for Small Scale Industries (SSIs) during the 1st National Conference on SSI.

Annual Observance: To commemorate this, the Government of India (GoI) designated 30 August as NSID, celebrated every year.

First Observance: The first NSID was observed on 30 August 2001.

Related Observance: The United Nations (UN) Micro, Small and Medium-sized Enterprises (MSMEs) Day is observed every year on 27 June worldwide .

MSMEs in India

Classification: The MSME Development Act, 2006, categorises enterprises based on investment and turnover,

• Micro-enterprise: Investment ≤ (from Rs. 1 crore to Rs. 2.5 crores); Turnover ≤ (from Rs. 5 crores to Rs. 10 crores)
• Small-enterprise: Investment ≤ (from Rs. 10 crores to Rs. 25 crores); Turnover ≤ (from Rs. 50 crores to Rs. 100 crores)
• Medium-enterprise: Investment ≤ (from Rs. 50 crores to Rs. 125 crores); Turnover < (from Rs. 250 crores to Rs. 500 crores).

Economic Role: Over the past 5 decades, MSMEs have emerged as the 2nd-largest employer after agriculture, catering to domestic and global markets with diverse products and services.

Contribution: 

• MSMEs contributed 30.1% to India’s Gross Domestic Product (GDP).
• Exports recovered to 45.73% (FY24) and stood at 45.79% till May 2024.

Budgetary Support:

• The Union Budget 2025-26 allocated Rs. 23,168 crores to MSMEs.

State-Wise Distribution: Maharashtra holds the highest share of MSMEs (17.55%), followed by Tamil Nadu,TN (over 10.28%) and Uttar Pradesh,UP (9%).These states remain key hubs for small industry clusters.

Global Relevance (UN data): MSMEs form 90% of businesses, generate 60–70% employment, and contribute 50% of global GDP.

GoI Initiatives for MSMEs

Udyam Registration Portal (URP): Launched in 2020, the URP allows for paperless, self-declaration-based registrations for MSMEs.

• As of July 2025: over 6.56 crore MSMEs are registered on the Udyam portal (including Udyam Assist).

Pradhan Mantri Vishwakarma Scheme (PMVS): Launched on 17 September 2023 by the Ministry of MSME with an initial outlay of Rs. 13,000 crores for 2023-24 to 2027-28.

• Aims to support traditional artisans across 18 trades through skill training, tools, and credit.
• Beneficiaries: Over 2.71 crore applications submitted.
• 1.68 crore artisans cleared Stage 1 verification (Gram Panchayat/ULB).
• Nearly 30 lakh artisans registered after multilayer verification

Enhanced Credit Guarantee Scheme (CGTMSE): Launched on 30 August 2000, the CGTMSE was created by the Government of India (Ministry of MSME) in partnership with Small Industries Development Bank of India(SIDBI) to enhance financial inclusion by enabling collateral-free credit for micro and small enterprises.

• Guarantee Coverage Percentage:Micro-enterprises (loans up to Rs.5 lakh): 85% guarantee coverage

Other MSEs (loans above Rs.5 lakh up to Rs.1 crore): 75% coverage

Loans between Rs.1–5 crore: 50% cov

PM Employment Generation Programme (PMEGP): Launched in 2008 as a credit-linked subsidy scheme.

• Implemented by the Khadi and Village Industries Commission (KVIC) at the national level, and through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs), and District Industries Centres (DICs) at the state/district level.
• Under the 2025 PMEGP guidelines, the maximum permissible project cost for manufacturing has been increased to Rs. 50 lakhs, and for the service sector to Rs. 20 lakhs

About Ministry of Micro, Small and Medium Enterprises (M/o MSME):
Union Minister- Jitan Ram Manjhi (Constituency – Gaya, Bihar)
Minister of State (MoS)- Sushri Shobha Karandlaje (Constituency – Bangalore North, Karnataka)