Kochi (Keralam) [India], June 22 (ANI): Emphasising the Reserve Bank of India (RBI) continued committment to the MSME sector, RBI Governor Sanjay Malhotra on Sunday described Micro, Small and Medium Enterprises (MSMEs) as India's 'entrepreneurship nursery' and said the central bank will continue to extend strong support to the segment.

He noted that MSMEs play a crucial role in the country's economy by fostering entrepreneurship, generating substantial employment, and contributing significantly to income creation.

Speaking to the media, he stated that the central bank is currently observing a dedicated week to spread awareness about various MSME schemes and the regulatory measures implemented to boost the sector.

'MSMEs are very vital, important for any economy and that is true even for India. They provide not only a lot of income but also lot of employment. It's also the nursery for entrepreneurship. We are celebrating, RBI is celebrating this week for spreading awareness about MSME schemes and the measures that we have taken,' Malhotra said.

The sector currently acts as a primary pillar of India's economic growth. Government data shows that MSMEs contribute roughly 31.1 per cent to the nation's Gross Domestic Product (GDP) and account for 48.58 per cent of total exports. The sector encompasses more than 7.47 crore enterprises across the manufacturing, trade, and services fields. It generates 35.4 per cent of manufacturing output and supports the livelihoods of approximately 32.8 crore people, making it the country's second-largest employment source after agriculture.

'Over the last many decades, RBI has been promoting the development of MSMEs,' Governor Malhotra added. 'A number of schemes, number of measures have been taken by RBI to improve the flow of credit to MSMEs.'

To strengthen this ecosystem, recent policy interventions have focused heavily on transitioning informal businesses into the formal economy. According to govt data, as of March 2026, over 7.9 crore MSMEs and informal micro-enterprises have registered through the Udyam and Udyam Assist platforms. This formalisation drive is paired with digital platforms like GeM, TReDS, and SAMADHAAN, which provide smaller businesses with better market access, legal safeguards, and faster dispute resolution for payments.

'And we will continue in the coming days and years to support this [MSME] very important sector for us,' Malhotra said. (ANI)