39,446 MSMEs shut shop in FY 2024-25: MoS Attributes Deregistration to Multiple Business Factors
The Minister of State further said that over 2.64 crore women-owned enterprises have registered nationwide following the launch of the Udyam Registration Portal in 2020.
The Government has confirmed that 39,446 Micro, Small and Medium Enterprises (MSME) ceased operations and shut shop during Financial Year (F.Y.) 2024-25, with the Union Government attributing the deregistrations to multiple business-related factors rather than a single trigger.
The information was revealed following a direct question raised in the Lok Sabha by Abhishek Banerjee seeking details on whether more than 35,500 MSMEs had closed in 2024-25, and whether Maharashtra, Tamil Nadu, Gujarat, Rajasthan and Karnataka accounted for the highest number of shutdowns. He further queried whether West Bengal continued to lead the country in the number of women-owned MSMEs.
Minister of State for MSME, Shobha Karandlaje replied that a twin criteria of investment and turnover, was adopted to define MSMEs in 2020 and the Udyam Registration Portal (URP) was launched on 01.07.2020 for their registration.
Further, the Udyam Assist Platform (UAP) was launched in January 2023 for Informal Micro Enterprises (IMEs), which are exempted from Goods and Services Tax (GST) filing and that 6.69 crore Enterprises, including IMEs, had registered on URP from 01.07.2020 to 15.08.2025,.
Karandlaje confirmed that 39,446 enterprises were officially recorded as shut down in 2024-25, with state-wise figures showing Maharashtra at the top with 9,702 closures, followed by Tamil Nadu (4,900), Gujarat (3,534), Rajasthan (3,274) and Karnataka (2,187).
She clarified that MSMEs prefer deregistration due to numerous reasons such as change of ownership, relocation, voluntary shutdown among others.
The Minister stated that as per the NSS 73rd Round data used in the Ministry’s 2023-24 Annual Report, West Bengal indeed had the highest number of female-owned proprietary MSMEs, accounting for 29,01,324 units. She added that since the launch of the Udyam Registration Portal in 2020, over 2.64 crore women-owned enterprises have registered nationwide, including IMEs, of which more than 27.65 lakh are in West Bengal
The Broader MSME Landscape and Digital Facilitation Efforts
The data on MSME closures comes at a time when the sector is witnessing both large-scale expansion and a push for higher digital integration. In a separate development, the National Industries Research and Development Council (NIRDC) has launched ‘InDApp’, a unified single-window digital platform formulated to streamline approvals, improve transparency and accelerate growth opportunities for MSMEs.
InDApp is designed to offer faster access to government schemes, market information, export opportunities and subsidy frameworks across multiple ministries. The app has been developed in coordination with seven central ministries and is slated to enhance inter-ministerial coordination and support MSMEs through every stage of scaling.
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