Purpose: This study seeks to determine statistically significant differences in MSME distribution across major states of India, analyzing variance in investment patterns, evaluating heterogeneity in turnover categories and assessing employment generation patterns. Design/methodology/approach: The study employs mixed-methods approach, combining both quantitative and qualitative data and analyses methods. This study draws on a range of empirical studies and reports of ministries, policy framework, economic survey and budgetary analysis to provide a comprehensive understanding of financials of MSMEs. Descriptive and analytical statistical measures are used in conjunction to provide a comprehensive analysis of the data, revealing its key characteristics, patterns and relationships. Findings: The study reveals that MSMEs have shown significant growth in investment and turnover in recent years and the sector is significantly contributing towards empowering semi-urban and rural areas, increasing employment opportunities and augmenting the overall economic viability of the nation. Insights from comparative analysis of leading states highlights the areas for which robust strategies may be formulated to further enhance MSME ecosystem, ensuring its continued contribution to regional and national economic development. Research limitations/implications: The primary limitations included reliance on secondary data sources, time period constraint (2020-2022), resource constraints and registration-based data limitations. The geographical scope of the study is limited, covering only a few prominent states, which may restrict the applicability of the findings to other parts of the country. External influences that could impact the MSME landscape have not been thoroughly examined. Originality/value: Through a comparative analysis of MSME investment and turnover trends across major Indian states, this study delineates the major focus areas, enabling the development of targeted regional strategies to foster MSMEs growth.