As per government data, the share of MSMEs in GDP grew from 29.7% in 2017-18 to 29.1% in 2021-22. Their contribution to manufacturing output reduced marginally from 37.4% to 36.2% during the same period.

The Ministry of MSMEs implements various schemes for the sector's development in areas like credit access, enterprise promotion, infrastructure, skill building etc. Key initiatives include the CGTMSE for collateral-free loans, PMEGP for employment generation, MSE-CDP for cluster development, and RAMP.

Other major efforts to support MSMEs include Rs 50,000 crore equity infusion through the Self-Reliant India Fund, no global tenders for procurement up to Rs 200 crore, integration of Udyam portal with National Career Service for jobseekers, and the PM Vishwakarma scheme for traditional artisans.

The Udyam Registration Portal launched in 2020 eased MSME registration and scheme access. Over 3.64 crore MSMEs employing 16.86 crore people have registered, including informal units on Udyam Assist.

Key policy steps taken are:

- Revised MSME classification criteria
- Udyam registration for ease of business
- Inclusion of retail/wholesale trade as MSMEs for priority sector lending
- 3-year extension of non-tax benefits for upward change in MSME status

In summary, the government has taken concerted steps to develop the MSME sector through focused initiatives for finance, market access, infrastructure, skill development and regulatory support. Robust MSME growth will be crucial for a self-reliant India.