Srinagar: Micro, small and medium enterprises (MSMEs) have hit a record 3.25 lakh in Kashmir.
Primarily driving the valley’s industrial economy, MSMEs account for roughly 65% of 5 lakh total units registered across Jammu and Kashmir.
Srinagar had the largest MSME base in the region with 75,354 units, followed by Anantnag with 45,923, Budgam with 42,204 and Baramulla with 41,476. Pulwama had 30,622 units, while Kupwara, Ganderbal and Bandipora had 23,424, 22,341 and 15,249 respectively.
As per the documents, MSMEs account for about 60% of industrial investment and nearly 90% of industrial employment in J&K, while the sector contributes around 6% of the UT’s GSDP.
Data revealed a sharp rise in industrial investment in recent years, although much of the industrial base remains composed of smaller enterprises. Realised industrial investment increased from ₹2,153 crore in 2022-23 to ₹3,389 crore in 2023-24 and ₹4,146 crore in 2024-25. By December 2025, investment during 2025-26 had reached ₹5,260 crore, already exceeding the previous full-year figure.
Pertinently, the Centre’s revised classification criteria for MSMEs, which came into effect from April 2025.
From April 2025, the investment and turnover thresholds for classification were revised: a micro enterprise can have investment of up to ₹2.5 crore and turnover up to ₹10 crore, a small enterprise up to ₹25 crore investment and ₹100 crore turnover, and a medium enterprise up to ₹125 crore investment and ₹500 crore turnover.
Interestingly, Kashmir’s MSME economy also continues to be closely linked with traditional sectors, particularly handicrafts and artisan-based industries.
The Centre’s RAMP programme for J&K identifies carpets, shawls, silk, basketry, pottery, copperware, silverware, papier-mâché and walnut wood among the region’s established small and cottage industries.
The programme estimates that the handicrafts sector provides direct employment to around 3.4 lakh artisans, indicating the overlap between Kashmir’s traditional cottage economy and its broader MSME ecosystem.
Lieutenant Governor Manoj Sinha last month, while attending the second edition of the Indian Chamber of Commerce (ICC) MSME Conclave, called for a technology-driven, globally competitive and inclusive ecosystem for Micro, Small and Medium Enterprises (MSMEs), describing them as the “true builders” of India’s economic resilience.
He called upon MSMEs to embrace the Nano GCC model as a pathway to global relevance and place technology at the heart of inclusive growth.