Government likely to launch MSME survey to track ease of doing business from 2026

Govt likely to track MSME health in 2026

The government is preparing to launch a dedicated survey in 2026 to capture the ease of doing business experience of micro, small and medium enterprises (MSMEs), sources told Moneycontrol.

The year-long exercise follows a demand from the MSME ministry and aims to go beyond regulatory bottlenecks, tracking the overall health of India’s small businesses. Officials said it is likely to cover financial inclusion, loan access and default rates, enterprise conditions, export performance and adoption of online channels.

The idea is to build a more comprehensive picture of how MSMEs are faring on the ground, the person noted.

Why it matters

MSMEs contribute nearly 30 percent to India’s GDP but face persistent challenges around credit and competitiveness. The new survey is expected to provide evidence-based inputs for policymaking and add to existing statistical efforts.

Currently, MoSPI tracks MSME health through the Annual Survey of Unincorporated Sector Enterprises (ASUSE), which complements the Annual Survey of Industries and the Annual Survey of Service Sector Enterprises. These exercises cover registered firms, but none specifically focus on MSMEs’ ease of doing business.

Earlier attempts and data gaps

This will be the first such government-led survey, after a 2024 study by ICRIER tracked 2,365 Udyam-registered companies. That survey found average interest rates on MSME loans stood at 12.27 percent, with medium and integrated firms paying slightly lower rates at 11.59 percent and 12.15 percent, respectively.

The MSME ministry has also been working to build an MSME-specific Index of Industrial Production (IIP) to capture industrial output in the sector. Currently, IIP measures registered manufacturing, mining and electricity activity across both large and small registered firms based on Annual Survey of Industries.

Policy context

The proposed survey comes amid broader efforts to give MSMEs a stronger policy voice. With rising emphasis on local manufacturing, exports and digitisation, the government wants to ensure that small firms’ challenges are mapped, allowing faster interventions.