39,446 MSMEs Shut Shop In FY 2024-25: MoS Attributes Deregistration To Multiple Business Factors

The Government informed Parliament that 39,446 MSMEs ceased operations in FY 2024-25. The Minister of State explained that deregistration occurred due to diverse business-related factors such as rising input costs, market competition, operational inefficiencies, shifting demand trends, and natural business cycles. The government clarified that the numbers represent voluntary deregistrations, not necessarily permanent closures, and should be interpreted in economic context. The report also highlights ongoing government initiatives supporting MSMEs, including credit access, digital enablement, and production-linked incentives. The data reflects the fragility of small enterprises but also signals a structural shift in MSME operations amid evolving economic conditions.