12,000-plus MSMEs shut in Maharashtra in 4 years? Minister says 'partially true'

Maharashtra industries minister Uday Samant on Wednesday acknowledged that thousands of micro, small and medium enterprises (MSMEs) had shut down in the state over the past four years, saying reports of more than 12,000 closures were "partially true" while attributing the trend to a combination of economic and geopolitical factors.

Samant made the statement in the legislative Assembly in response to a question from BJP MLA and former finance minister Sudhir Mungantiwar, who asked whether over 12,000 small industrial units had ceased operations since 2022 due to the post-Covid economic slowdown, rising fuel and electricity costs and other adverse business conditions.

In a written reply, the minister 'It is partially true. It has come to our attention that some industrial units in the MSME sector have closed down in the last four years.'

While he did not confirm the exact number of closures, Samant acknowledged that a section of the state's MSME sector had been affected by difficult economic conditions.

Apart from the lingering impact of the Covid-19 pandemic and higher input costs, the minister also cited the ongoing conflict in West Asia as one of the factors affecting businesses. The region has witnessed prolonged geopolitical tensions that have disrupted global supply chains, increased freight costs and contributed to volatility in energy prices, affecting manufacturing and exports.

MSMEs form the backbone of Maharashtra's industrial economy, accounting for a significant share of employment and manufacturing activity. The sector has faced multiple challenges in recent years, including weaker demand, inflationary pressures, higher borrowing costs and supply chain disruptions.

Samant told the House that the state government had introduced measures to revive sick and closed industrial units under Maharashtra's industrial policy announced in December 2025.

He said the government was extending financial and policy incentives to support MSMEs, encourage industrial revival and promote fresh investment across the state.

The minister did not provide a district-wise break-up of the units that had shut down or specify how many had resumed operations under the state's revival initiatives.

With PTI inputs