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.
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) |
Read more:
There are two different types of receipts that a business or a government generates during…
The Department of Investment and Public Asset Management (DIPAM) released new guidelines amending its earlier2016…
The Government of the National Capital Territory of Delhi has released the official list of…
The Government of Rajasthan in their Order No.16 (1).v.m./2024 dated 19.11.2024 declared bank Holidays under…
Meaning of Expenditure and Expenses: Expenditure refers to the total amount spent to acquire goods…
In pursuance of the explanation in section 25 of NI Act 1881, read with the…