Map: Indian States by Number of MSMEs (2025)
Explore India's MSME landscape: Maharashtra leads with 3.71M enterprises, followed by Tamil Nadu and Uttar Pradesh. Discover key facts and regional insights in our blog.
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.
| 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 |
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.
