Micro, Small and Medium Enterprises (MSMEs) are the beating heart of the Indian economy as they employ over 120 million workers and contribute nearly 30% to India’s GDP. Yet, as we celebrate MSME Day 2025, with the theme 'Enhancing the role of Micro-, Small and Medium-sized Enterprises (MSMEs) as drivers of Sustainable Growth and Innovation,' a hard truth remains: the very employees who fuel this sector which includes frontline workers, shop floor staff and office executives, often lack access to even the most basic healthcare.
Healthcare — No Longer a Perk; A Priority
In an era where health is synonymous with productivity, this gap has become more than a welfare issue; it is a business imperative. According to a 2024 report by the International Labour Organisation, over 80% of India’s informal and blue-collar workforce remains uninsured. Yogesh Agarwal, Founder & CEO of Onsurity, says, "Many MSMEs operate on thin margins and cannot afford traditional group insurance schemes that come with rigid conditions, minimum employee counts, or annual lock-ins. This has left millions of workers, delivery partners, field sales reps, security staff, and more vulnerable to out-of-pocket medical expenses, which push nearly 55 million Indians into poverty each year, as per the Public Health Foundation of India."
New Models for a New Workforce
Fortunately, a shift is underway. Subscription-based health models are disrupting traditional insurance structures. These models enable MSMEs to offer flexible and affordable healthcare plans without requiring minimum team sizes or long-term contracts.
"What is more, digital-first platforms now make onboarding seamless and cashless, solving the logistical hassles many small to medium-sized businesses face," adds Yogesh.
From Insurance to Holistic Wellbeing
Beyond insurance, MSMEs are slowly embracing holistic wellness programs. From regular health check-ups and yoga sessions to mental health consultations and stress management workshops, companies are realising that proactive care goes a long way.
Wellness benefits are no longer a 'metro only' trend. A 2023 KPMG study found that 71% of MSME employees reported lower attrition and improved morale after implementing even basic wellness initiatives. These efforts build trust, foster loyalty, and make employees feel valued; something that matters immensely in deeply close-knit teams and organisations.
Ink Dive: Onsurity’s Co-Founder Kulin Shah on Creating Monthly Subscription-Based Healthcare Plans for India’s SMEs
Proactive Policy Engagement Is the New Culture Code
Forward-looking MSMEs are now integrating policy check-ups into their HR calendars with annual or bi-annual reviews of employee health benefits to ensure they evolve with workforce needs.
Yogesh emphasises that these check-ups not only improve plan relevance but also send a strong message to employees: “We are listening. We care. We will help.”
Envisioning Ahead: Partnering for Resilience
In a time when hiring and retaining talent are increasingly competitive, these initiatives become powerful differentiators. As we mark MSME Day 2025, it is time we shift the spotlight to the people powering this sector: the employees.
Affordable and accessible healthcare is not just a moral responsibility; it is a strategic necessity.
India’s MSMEs deserve partners who understand their unique needs and can scale and function at their own pace. With the right health infrastructure, subscription-based plans, integrated wellness programs, and proactive policy engagement, we can future-proof not just our businesses but our people too.
Yogesh says, "Because when you care for the backbone of your enterprise, you are not just building a business — you are building a legacy.
