The micro, small and medium enterprises (MSMEs) are often known as the backbone of the Indian economy. This sector contributes more than 29% to the GDP and is responsible for around 50% of India’s total exports. MSMEs also contribute one-third of India’s manufacturing output and employ people living in semi-urban and rural areas.
The MSME sector has been a significant source of employment in India. Today, it is estimated that there are 63 million MSMEs across the country. As of August 2, 2023, the Udyam Registration Portal reported that the total number of persons employed in MSMEs registered between July 1, 2020, and August 1, 2023, amounted to an impressive 12,36,15,681.
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. MSMEs are owned by women and socially disadvantaged groups in 20.73% and 66.27% of cases respectively. This gives the Indian economy a much-needed push.
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 along with the Reserve Bank of India launched the following initiatives.
- MSME Samadhaan, 2. Atmanirbhar Bharat, 3. Udyog Aadhaar, 4. Mudra, 5.ZED scheme, 6. Make in India, 7. Stand up India, 8. Startup India, 9. Udyam Assist Platform, 10. RAMP scheme
The above schemes help businesses in the MSME sector and are expected to contribute largely to India’s economic growth.
The below schemes help businesses in the MSME sector and are expected to contribute largely to India’s economic growth.
Related posts on the Role of Priority Sector and MSME in the Indian Economy
| 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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