Reforms for MSMEs and Industry: What India’s Latest Moves Mean for Market Entrants

Micro, Small and Medium Enterprises (MSMEs) in India are more than just economic units. They are the backbone of innovation, employment, and regional growth. For businesses thinking of entering the Indian market, understanding the latest reforms matters greatly. As of 2025, the Government has introduced several measures that reshape how MSMEs are classified, financed, and supported. Here’s a round-up of what’s changing, what it means, and how industry players can assess the future.

 

Major Reforms in 2025

MSMEs in Numbers: Latest Stats

1. India has 5.93 crore registered MSMEs, employing 25+ crore people.
2. In FY25, nearly 10 lakh MSMEs benefitted from developmental programmes (e.g. MSME-SAMBANDH), especially in skill-upgradation and market linkages.
3. E-commerce integration is paying off: Firms registered on e-commerce platforms often report higher sales growth, better access to finance, and improved profitability compared to those that are not.

What These Reforms Mean for Industry

1. Greater Incentive to Scale: With higher thresholds, many firms growing in turnover or investment will still retain MSME status, keeping access to benefits and schemes.
2. Improved Access to Finance: Enhanced guarantee covers and credit schemes reduce risk for lenders; this opens the door for more formal loans, even for smaller or newer enterprises.
3. Reducing Entry Friction: Digital tools and newer assessment models save time and cost, especially important for foreign or new market entrants.
4. Opportunity in Sectoral Clusters: Industries like footwear, toys, leather or traditional artisans are receiving focused support. If your business aligns, these clusters offer advantages in subsidies, infrastructure or supply chains.

Challenges That Still Remain

1. Regulatory compliance: MSMEs still face a heavy burden of compliance; many laws and procedural requirements remain complex.
2. Digital divide: Not all micro-enterprises have reliable digital access, which can affect the use of new tools or e-commerce.
3. Awareness & implementation gaps: Government schemes may exist in policy, but operational clarity, access or awareness can lag in many states and rural areas.

How Walmond Consultancy LLP Helps You Navigate This

1. Diagnostics: We map whether your enterprise qualifies under the new MSME thresholds and which benefits you can access.
2. Financial structuring: Our experts guide you through applying for guarantee-backed loans, credit cards, or term loans for priority sectors.
3. Digital & compliance readiness: Support for Udyam registration, digital assessment models, and compliance systems.
4. Sector & cluster alignment: We help identify which clusters or sector schemes align with your product or service for maximum benefit.

2025’s reforms represent a meaningful shift in India’s MSME and industrial policy. They broaden support, ease financial access, and reward digital adoption. For market entrants or growing firms, staying informed and agile is vital. The companies that move fast to leverage these changes will find themselves better positioned, able to scale, compete, and thrive.

If your business is considering entry into India or expanding its MSME footprint, Walmond Consultancy LLP can help you turn these reforms into an opportunity. Contact us to explore how.