The Government has ensured that 39,446 MSMEs discontinued operations and shut shop in the Financial Year 2024-25, with the Union Government attributing the deregistrations to multiple business-pertinent factors instead of a single trigger.
The information was disclosed after a direct question raised in the Lok Sabha by Abhishek Banerjee, asking details on whether more than 35,500 Micro, Small, and Medium Enterprises (MSMEs) had closed in 2024-25, and whether Maharashtra, Tamil Nadu, Gujarat, Rajasthan, and Karnataka accounted for the highest number of shutdowns. He queried whether West Bengal continued to lead the country in the number of women-owned MSMEs.
Shobha Karandlaje, Minister of State for MSME, stated that a twin criterion of investment and turnover was adopted to describe MSMEs in 2020, and the Udyam Registration Portal (URP) was launched on July 1, 2020, for their registration.
Additionally, in January 2023, the Udyam Assist Platform (UAP) was launched for Informal Micro Enterprises (IMEs), which are exempted from Goods and Services Tax (GST) filing, and 6.69 crore Enterprises, including IMEs, had registered on URP from 01.07.2020 to 15.08.2025.
Karandlaje validated that 39,446 enterprises were officially recorded as shut down in 2024-25, with state-wise figures depicting Maharashtra at the top with 9,702 closures, followed by Tamil Nadu (4,900), Gujarat (3,534), Rajasthan (3,274), and Karnataka (2,187).
She cited that the preference of the MSME is deregistration because of various reasons, like change of ownership, relocation, voluntary shutdown, among others.
The Minister cited that according to NSS 73rd Round data used in the Ministry’s 2023-24 Annual Report, West Bengal secured the highest number of female-owned proprietary MSMEs, accounting for 29,01,324 units. She mentioned that with the launch of the Udyam Registration Portal in 2020, more than 2.64 crore women-owned enterprises were registered all across the country, including IMEs, of which more than 27.65 lakh are in West Bengal.
Broader MSME Landscape & Digital Facilitation Evaluates
The information regarding MSME closures is released during a period of significant expansion within the sector, alongside an increasing emphasis on digital integration. Additionally, the National Industries Research and Development Council (NIRDC) has introduced ‘InDApp’, a unified digital platform designed to facilitate the approval process, enhance transparency, and accelerate growth opportunities for MSMEs.
Also Read: New Rule of Payment to MSMEs Causes Uncertainty in Textile Markets
InDApp has developed to propose quick access to government schemes, market information, export opportunities, and subsidy frameworks across multiple ministries. The app has been made in coordination with seven central ministries and is aimed at improving inter-ministerial coordination and supporting MSMEs through every phase of scaling.
Read More
