StartupFloraHow MSMEs and GST Reforms Are Powering Modi’s Vision for Viksit Bharat 2047
The Indian economy is on the move, and a major reason behind this is the government's renewed focus on MSMEs (Micro, Small, and Medium Enterprises). In 2024, several policy decisions were taken that could redefine how small businesses grow in India. From tax benefits to easier registration, the Indian government’s MSME support is finally aligning with its big goals.
What Is ‘Viksit Bharat 2047’ and Why MSMEs Are at Its Core
Viksit Bharat 2047 is Prime Minister Narendra Modi’s long-term vision to make India a fully developed nation by the 100th year of independence. This ambitious plan includes infrastructure, digital innovation, manufacturing, and social development. But none of it can succeed without strong MSME development in India.
Small businesses are the backbone of the economy. They provide local jobs, innovate at the grassroots, and keep the economy diverse and resilient. That's why the government has separated the MSME ministry from the industries ministry to give it the independent focus it deserves.
PM Modi’s Message: Empower MSMEs to Create Jobs
Prime Minister Modi has made it clear that unless small entrepreneurs, farmers, and MSMEs are empowered, India cannot achieve inclusive growth. He said, Big industries alone cannot guarantee people’s welfare. Until MSMEs grow, we cannot build a strong economy.
He also highlighted that the MSME sector plays a key role in generating employment across urban and rural India. This focus aligns directly with job creation, skill development, and economic decentralisation.
7 Crore MSMEs Registered Since 2020: A Rapid Rise
Since 2020, nearly 7crore new MSME units have been registered across India. This surge has happened in just 4 years a huge milestone.
If each of these MSMEs hires even five people on average, that means around 35 crore jobs have been supported by this sector.
Today, MSMEs:
- Contribute 31% to India’s GDP
- Account for 35% of manufacturing
- Handle 46% of total exports
These numbers show why MSMEs must be central to India’s future growth strategy.
Why the Separation of MSME Ministry Matters More Than You Think
In the past, MSMEs were treated like a side topic under the broader industries ministry. But now, the creation of a separate ministry gives these businesses their own voice. It means:
- Faster policy decisions
- Dedicated schemes and funding
- Closer focus on ground-level challenges
This is a major step toward serious MSME development in India.
GST Reforms 2024: Simpler Slabs, Bigger Impact
One of the biggest updates in 2024 was the introduction of new GST slabs:
- Essential and small business goods: 5%
- General category goods and services: 18%
- Luxury items and harmful products: 40%
This new structure is easier to understand and fairer. It’s a clear example of GST reform for MSMEs who often struggled with complex tax codes.
Zero GST on Health & Insurance: What It Means for the Common Man
In a welcome move, the government has now put zero tax on health insurance and medical services. Earlier, people paid 18% GST even for basic health coverage. Now, that’s gone. This step will benefit middle-class families, self-employed workers, and small business owners who want affordable healthcare.
This is more than just tax relief – it’s about dignity and access.
How These Reforms Strengthen India Against Global Economic Pressures
India is not isolated from global trade wars or tariff politics. Countries like the US have, in the past, imposed high import duties on Indian goods. But by simplifying taxes and boosting local production through tax exemption for MSMEs, India becomes less dependent on foreign players.
A stronger MSME base means more self-reliance, more exports, and more power in global markets.
From Slogan to Strategy: Sabka Saath, Sabka Vikas in Action
PM Modi’s popular slogan isn't just a speech line anymore. With steps like:
- Indian government MSME support through new schemes
- Tax relief for MSMEs via GST changes
- Zero tax on health insurance
we're seeing real actions that match the promises.
How StartupFlora Helps New Startups and MSMEs
StartupFlora is built to support the growth of India’s next generation of businesses. Whether you're a first-time entrepreneur or running a local MSME, we can help you:
- Register your MSME quickly and correctly
- Understand new GST rules and compliance
- Apply for government schemes and tax benefits
- Build your business strategy step-by-step
We don’t just consult, we partner in your growth journey.
Can India Become the 3rd Largest Economy by 2030?
If the current momentum continues, India is well on track to become the third-largest economy in the world. But the path to Viksit Bharat 2047 depends on how well we empower the backbone of our economy our MSMEs.
For that, simplified taxes, fair regulations, and continuous support are the key.