In Jammu Kashmir over 7,000 MSME Closed Since 2020, Thousands Impacted | Kashmir Life

SRINAGAR: Jammu and Kashmir has witnessed the shutdown of 7,066 micro, small and medium enterprises (MSMEs) between July 2020 and November 2025, resulting in significant job losses across the Union Territory.

The data, shared in Rajya Sabha by Minister of State for MSMEs Shobha Karandlaje in response to a question by Digvijaya Singh, highlights the challenges faced by entrepreneurs and workers amid shifting market conditions, pandemic disruptions, and other operational pressures.

Since the launch of the Udyam Registration Portal in July 2020, Jammu and Kashmir has registered a total of 984,574 MSMEs, with the number growing steadily from 26,237 in 2020-21 to 291,616 in 2023-24, before slightly declining to 219,145 in 2024-25. These enterprises have provided employment to thousands of workers across the Union Territory, but the recent closures have directly impacted more than 7,000 jobs, underscoring the vulnerability of small businesses in the region.

Across the country, a total of 7.22 crore MSMEs were registered on the Udyam Portal since July 2020, with 1,20,933 enterprises deregistering during the same period. The closures nationally have affected an estimated 7.8 lakh workers, underscoring the importance of targeted support measures for sustaining small businesses. In Jammu and Kashmir, while over 2 lakh jobs were linked to the registered MSMEs, the closure of 7,066 units has displaced 7,066 workers directly, reflecting both economic stress and the need for intervention at the regional level.

The Minister explained that enterprises deregister on the Udyam portal for various reasons, including change in ownership, cessation of operations, or duplicate registrations. The Government has also instituted rehabilitation and support mechanisms, such as access to credit, targeted financial schemes, and advisory services, aimed at preventing further MSME mortality and safeguarding employment.

Nationally, Maharashtra, Tamil Nadu, Rajasthan, and Karnataka accounted for the largest number of MSME closures, with Maharashtra alone recording over 29,000 shutdowns affecting 1.27 lakh jobs. Meanwhile, emerging Union Territories such as Ladakh and Lakshadweep had relatively few closures, reflecting smaller industrial bases.

The data also shows that despite the closures, the proportion of MSMEs shut down relative to total registrations remains low at 0.17 per cent, signalling that the sector continues to expand robustly even as certain units struggle. The Government emphasised that ongoing support measures, including Udyam registration incentives, credit facilitation through banks, and capacity-building programmes, are designed to sustain MSMEs and mitigate employment losses across all States and Union Territories, including Jammu and Kashmir.