The Crossbill News Desk
Approximately 35,567 micro, small, and medium enterprises (MSMEs) across India, registered on the central government’s Udyam Portal, have shut down in the ongoing financial year (2024-25) as of February 28, 2025, according to Minister of State for MSMEs Shobha Karandlaje.
The minister disclosed the figures in a written response to the Rajya Sabha, as reported by Deccan Herald.
Since the launch of the Udyam portal on July 1, 2020, a total of 75,082 MSMEs have ceased operations across the country. The current year’s closures account for approximately 47.4% of the total shutdowns recorded so far and nearly double the number of MSMEs that shut down in 2023-24, which stood at 19,828.
Maharashtra recorded the highest number of closures this year, with 8,472 MSMEs shutting down, followed by Tamil Nadu (4,412), Gujarat (3,148), Rajasthan (2,989), and Karnataka (2,010). The final tally for 2024-25 is expected to be higher, as the data does not include figures from March.
The Udyam portal was introduced to simplify business registration and promote ease of doing business—a key focus of the Union government in recent years.
The MSME sector has also received several incentives in the Union Budget, including increased investment and turnover limits as well as enhanced credit guarantees.
Despite these measures, the number of MSME closures has remained high, particularly since the COVID-19 pandemic. However, the government has not provided updated data on job losses due to these shutdowns.
The last official report on employment impact came in July 2023, when then-Union MSME Minister Jitan Ram Majhi informed the Lok Sabha that over three lakh people had lost their jobs due to the closure of nearly 50,000 MSMEs over the past decade.
According to Mint, Majhi had attributed these closures to factors such as ownership changes, redundant certificates, and duplicate registrations.
As of February 28, the total number of MSMEs registered on the Udyam portal across India stands at 6.05 crore, DH reported.
The minister disclosed the figures in a written response to the Rajya Sabha, as reported by Deccan Herald.
Since the launch of the Udyam portal on July 1, 2020, a total of 75,082 MSMEs have ceased operations across the country. The current year’s closures account for approximately 47.4% of the total shutdowns recorded so far and nearly double the number of MSMEs that shut down in 2023-24, which stood at 19,828.
Maharashtra recorded the highest number of closures this year, with 8,472 MSMEs shutting down, followed by Tamil Nadu (4,412), Gujarat (3,148), Rajasthan (2,989), and Karnataka (2,010). The final tally for 2024-25 is expected to be higher, as the data does not include figures from March.
The Udyam portal was introduced to simplify business registration and promote ease of doing business—a key focus of the Union government in recent years.
The MSME sector has also received several incentives in the Union Budget, including increased investment and turnover limits as well as enhanced credit guarantees.
Despite these measures, the number of MSME closures has remained high, particularly since the COVID-19 pandemic. However, the government has not provided updated data on job losses due to these shutdowns.
The last official report on employment impact came in July 2023, when then-Union MSME Minister Jitan Ram Majhi informed the Lok Sabha that over three lakh people had lost their jobs due to the closure of nearly 50,000 MSMEs over the past decade.
According to Mint, Majhi had attributed these closures to factors such as ownership changes, redundant certificates, and duplicate registrations.
As of February 28, the total number of MSMEs registered on the Udyam portal across India stands at 6.05 crore, DH reported.
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