MSME Sector to Drive India’s Economic Boom in 2025: CA Ashok Holani, Director, Holani Consultants Pvt Ltd

Jaipur (Rajasthan) [India], May 29: India's Micro, Small, and Medium Enterprises (MSME) sector is set to become the key growth driver of the country's economy by the end of 2025, according to CA Ashok Holani, Director of Holani Consultants Pvt Ltd.

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Speaking on the sidelines of the latest International Monetary Fund (IMF) World Economic Outlook (WEO) report—which projects India as the world’s fourth-largest economy, surpassing Japan—Holani emphasized the crucial role of MSMEs in this growth. “MSMEs will play a pivotal role in India's $4 trillion economy, and cannot be overlooked,” he stated.

The MSME sector already contributes roughly 29% to India’s GDP and employs nearly 60% of the workforce, making it the backbone of economic development. Holani highlighted that several industries within MSMEs—including electric vehicles (EV), agritech, FinTech, e-commerce, healthcare, and renewable energy—are poised for significant expansion in 2025.

With the MSME Gross Value Added (GVA) share in India’s GDP steadily rising to 30% in 2022–23, Holani expressed confidence in ongoing policy support. Initiatives like NITI Aayog’s SME 4.0 Competence Centers are driving technological adoption, ensuring MSMEs remain competitive in the evolving economic landscape.

With commercial credit exposure increasing to ₹35.2 lakh crore, a 13% year-on-year (YoY) increase, expect tremendous momentum in the MSME sector. Further, a 2.5 per cent CAGR in the number of MSMEs would mean multiple engines to steer the economy towards $4 trillion, he said.

"The big leap for MSMEs is inevitable, and so is their role in driving India’s growth story," he concluded.

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(The story has come from a syndicated feed and has not been edited by the Tribune Staff).