Archive · 24 Jul 2026
MSMEs Report Over 8 Crore Jobs in FY2025-26
The Ministry of Micro, Small and Medium Enterprises (MSMEs) of India reported that over 8 crore jobs were created in the fiscal year 2025-26.
This is a significant increase from previous years, showing that MSMEs are playing a bigger role in providing jobs.
Uttar Pradesh is the top state for MSME employment, followed by Maharashtra and Tamil Nadu.
The trading sector is the largest employer, which might mean that more people are working in commerce and distribution rather than manufacturing.
However, there are concerns about the quality of these jobs and why some states like Andhra Pradesh and Punjab saw a decrease in MSME employment.
Over 8.04 crore jobs reported by MSMEs in FY2025-26, up from 6.91 crore in FY2024-25.
Uttar Pradesh leads with 1.18 crore MSME jobs, followed by Maharashtra and Tamil Nadu.
Trading sector is the largest employer with 2.98 crore jobs, surpassing services and manufacturing.
Notable declines in MSME employment in Andhra Pradesh, Karnataka, and Punjab.
4,252 MSMEs closed in Kerala over the past three years, with 4.61 lakh registered in the same period.
- Who
- Ministry of Micro, Small and Medium Enterprises (MSMEs) of India
- What
- Reported employment under the UDYAM registration portal
- When
- FY2025-26
- Where
- Across India
- Why
- To highlight the growing role of registered enterprises in India’s employment landscape
Positive Growth Perspective
Concerns Over Job Quality
Employment Growth
Positive Growth Perspective
Significant increase in MSME employment indicates robust job creation.
Concerns Over Job Quality
Lack of data on job quality raises concerns about stability and wages.
Sector Dominance
Positive Growth Perspective
Trading sector's dominance shows diversification in MSME employment.
Concerns Over Job Quality
Shift towards trading may indicate weaker manufacturing growth.
- Total Employment FY2025-26
- 8.04 crore
- Top Employing State
- Uttar Pradesh (1.18 crore jobs)
- Largest Employing Sector
- Trading (2.98 crore jobs)
- Second Largest Employing State
- Maharashtra (67.97 lakh jobs)
- Third Largest Employing State
- Tamil Nadu (61.47 lakh jobs)
- MSME Closures in Kerala
- 4,252 closures in the past three years