Over 10,000 MSMEs shut down in 2022-23, highest in past four years

FM Sitharaman revamped the credit guarantee scheme for MSMEs to enable an additional collateral-free guaranteed credit of Rs 2 trillion

A total of 10,655 micro, small and medium enterprises (MSMEs) shut down in 2022-23; the highest   in the last four years.

There were 6,222 such closures in financial year 2021-22 (FY22); according to data released in Parliament as part of a Rajya Sabha question on Monday. The data for the current year (FY23) is as of February 1, 2023.

The data also revealed that the ratio of closures to new businesses being started has been worsening over the past three years. There were over 11,000 new firms started for every one of the 175 that shut down in 2020-21. This