(MSME samadhaan, Atmanirbhar Bharat package, Make in India, Start-up India, Stand-up India, Zed certificate, Udyam Assist platform, RAMPS, Mudra Loan, PMEGP, TReDS, ECLGS, etc.)
Micro, small, and medium enterprises (MSMEs) are often known as the backbone of the Indian economy which contributes 29% to the GDP of India. The sector is responsible for around 50% of the country’s total exports. One-third of India’s manufacturing output originates from the MSME sector.
The MSME sector has been a significant source of employment in India as it creates a lot of job opportunities at a relatively lower capital cost than large industries in India. Additionally, they help to industrialize under-developed and rural areas, which ensures a more fair distribution of income and wealth across the country and reduces regional disparities. Today, it is estimated that there are 63 million MSMEs across the country. As of December 4, 2023, the Udyam Registration Portal recorded 3.16 crore MSME registrations since its inception on July 1, 2020. Furthermore, the total employment documented on the portal as of December 6, 2023, reached 15.50 crore.
MSMEs help the economy by not only creating jobs but also lowering production costs, increasing purchasing power, and providing convenience. The government encourages micro-enterprises, especially in low-income areas. It helps the business and economy grow.
The Government has taken various measures including ongoing schemes to ensure sufficient financial accessibility and seamless credit to Micro, Small, and Medium Enterprises (MSMEs). Contemplating the role of this sector in Employment generation, promotion of entrepreneurship, regional development, export promotion, innovation, reduction of income disparities, and support for large industries, the Government of India and the Reserve Bank of India launched the following initiatives.
Related posts on the Role of the Priority Sector and MSME in the Indian Economy
Also, read the following schemes:
| Prime Minister’s Employment Generation Programme (PMEGP) | Trade Receivable Discounting System (TReDS) |
| Pradhan Mantri Mudra Yojna (PMMY) | Emergency Credit Line Guarantee Scheme (ECLGS) |
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