State-Wise Distribution of MSMEs in India: Facts & Figures (2025)

India’s Micro, Small, and Medium Enterprises (MSMEs) serve as the foundation of its economy, fostering innovation, job creation, and regional development.

With more than 23 million MSMEs located throughout the 28 states and 8 Union Territories (UTs) of the country, the distribution of these enterprises offers compelling insights into India’s economic framework.

Drawing on the most recent data, this article presents essential facts and captivating observations regarding the state-wise distribution of MSMEs, highlighting the diversity and potential inherent in India’s entrepreneurial spirit.

Number of MSMEs in every Indian State

Rank	State/Union Territory	Number of MSMEs
1	Maharashtra	37,12,000
2	Tamil Nadu	21,74,000
3	Uttar Pradesh	20,28,000
4	West Bengal	18,00,000
5	Rajasthan	15,57,000
6	Gujarat	15,53,000
7	Andhra Pradesh	13,00,000
8	Karnataka	12,00,000
9	Bihar	10,00,000
10	Madhya Pradesh	10,00,000
11	Kerala	9,00,000
12	Haryana	8,00,000
13	Telangana	8,00,000
14	Assam	7,50,000
15	Punjab	7,00,000
16	Odisha	6,50,000
17	Delhi	5,00,000
18	Chhattisgarh	4,50,000
19	Jharkhand	4,00,000
20	Uttarakhand	3,00,000
21	Himachal Pradesh	2,50,000
22	Jammu & Kashmir	1,50,000
23	Goa	50,000
24	Tripura	25,000
25	Puducherry	25,000
26	Manipur	20,000
27	Chandigarh	20,000
28	Meghalaya	15,000
29	Dadra & Nagar Haveli and Daman & Diu	15,000
30	Nagaland	12,000
31	Mizoram	10,000
32	Andaman & Nicobar Islands	5,000
33	Arunachal Pradesh	5,000
34	Ladakh	5,000
35	Sikkim	5,000
36	Lakshadweep	1,000

Percentage share of every Indian State in total MSMEs

Key Facts

National Total: The 36 states and Union Territories together accommodate around 23.22 million MSMEs, although national estimates from the Udyam Registration Portal indicate a higher number of 5.70 crore as of December 2024, suggesting a considerable presence of informal or unregistered enterprises.

Top Performers: Maharashtra stands at the forefront with 3.71 million MSMEs, trailed by Tamil Nadu (2.17 million) and Uttar Pradesh (2.03 million). Collectively, these three states represent nearly 35% of the total MSMEs listed, highlighting their economic significance.

Regional Heavyweights: West Bengal (1.80 million), Rajasthan (1.56 million), and Gujarat (1.55 million) constitute a formidable second tier, each with over 1.5 million enterprises, indicative of their strong industrial and commercial frameworks.

Smaller Players: Union Territories such as Lakshadweep (1,000 MSMEs) and states like Sikkim, Arunachal Pradesh, and Ladakh (5,000 each) report the lowest figures, emphasizing the difficulties of achieving scale in smaller or geographically remote areas.

Interesting Insights

Maharashtra’s Preeminence: With 3.71 million MSMEs, Maharashtra emerges as the central hub for MSMEs in India. This leadership is unsurprising, considering Mumbai’s role as a financial capital and the state’s varied industries, ranging from textiles to technology startups.

This concentration indicates a conducive environment for entrepreneurship, bolstered by robust infrastructure and market accessibility.

Strength in the South: Tamil Nadu and Karnataka, boasting 2.17 million and 1.20 million MSMEs respectively, exemplify the economic dynamism of South India. Tamil Nadu’s solid manufacturing foundation, especially in the automobile and textile sectors, alongside Karnataka’s technology-driven economy centered in Bengaluru, propel their impressive standings.

Together with Andhra Pradesh (1.30 million) and Kerala (0.90 million), the Southern region significantly enhances the national MSME framework.

Uttar Pradesh’s Ascendancy: Uttar Pradesh, with 2.03 million MSMEs, secures the third position, indicative of its increasing economic influence. The state’s substantial population and government initiatives such as the “One District, One Product” scheme have fostered MSME expansion, particularly in handicrafts and agro-based sectors.

Disparities in Smaller Territories: The pronounced differences between states like Maharashtra and smaller Union Territories such as Lakshadweep (1,000 MSMEs) underscore regional inequalities.

Smaller states and UTs, including Mizoram (10,000) and Nagaland (12,000), encounter obstacles like inadequate infrastructure and limited market access; however, their MSMEs are vital to local economies, often concentrating on specialized sectors like handicrafts and tourism.

Contributions from the North and East: States such as Rajasthan and Gujarat in the North, along with West Bengal in the East, exhibit robust MSME ecosystems.

Rajasthan’s handicraft and textile sectors, Gujarat’s trading and manufacturing strengths, and West Bengal’s varied small-scale industries significantly contribute to their elevated rankings.

Conclusion

The distribution of MSMEs across various states in India illustrates a vibrant and varied economy. Maharashtra, Tamil Nadu, and Uttar Pradesh are at the forefront, propelled by factors such as industrial growth, population density, and supportive policies.

In contrast, smaller states and Union Territories, despite having fewer MSMEs, play a distinctive role in enriching India’s entrepreneurial landscape. As India seeks to bolster its MSME sector, it is essential to tackle regional inequalities and improve infrastructure in smaller states to unlock even greater economic opportunities.

For the most recent and detailed information, readers are encouraged to visit the Udyam Registration Portal or the official resources provided by the Ministry of MSME.

Source

• List of MSME Registered Units under UDYAM