India’s economic landscape is shaped by diverse sectors where MSMEs serve as critical growth engines, contributing 30% of GDP and 45% of manufacturing output. This section examines the top 10 sectors by GDP contribution, detailing MSME roles and government collaborations driving innovation, employment, and global competitiveness.
1. Information Technology (IT) and Software Services
Sector Contribution to GDP
The IT sector contributes 9.3% to India’s GDP, with exports exceeding $200 billion in 2024–25.
Role of MSMEs
- Software Development: MSMEs provide niche solutions in AI, blockchain, and cybersecurity for global clients[1][4].
- IT-enabled Services: Over 15,000 MSMEs offer BPO, data analytics, and cloud services, employing 4.5 million people.
Government Collaboration
- Digital India Initiative: MSMEs receive subsidies for adopting AI/ML tools under the ₹1,500 crore Technology Upgradation Fund
- Startup India: 2,500+ tech startups partnered with MSMEs for R&D in 2024, supported by tax holidays and incubators
2. Healthcare and Pharmaceuticals
Sector Contribution to GDP
Accounts for 4.7% of GDP, with exports valued at $50 billion in 2024
Role of MSMEs
- Generic Drug Manufacturing: 80% of India’s generic exports are produced by 12,000+ MSMEs[4][9].
- Medical Devices: MSMEs supply 65% of domestically manufactured equipment, including PPE and diagnostic kits
Government Collaboration
- Production-Linked Incentive (PLI) Scheme: ₹10,000 crore allocated for MSMEs in bulk drug and medical device manufacturing