Micro, Small and Medium Enterprises (MSMEs) in India had remained a closed book. Most of us do not have a clear idea about the sector that creates large scale employment and also contributes significantly in exports and industrial production.
They form the backbone of the economy with their enormous contribution. They generate more employment per unit of capital invested. They are complementary to large industries as ancillary units and this sector contributes enormously to socio-economic development of the country.
Major contributors include Retail & Wholesale trade, Agriculture, Real Estate, IT, Textile, Tourism, etc. to the Indian Economy. Among these, be it a service or manufacturing unit, small industries play a great role in ensuring the socialistic goals like equality of income and balance regional development.
MSMEs to Indian Economy:
- Contribution to GDP:
- There are about 2.6 crore enterprises in this sector. They provide employment to over 60 million Indian populations. With 38% contribution to nation’s GDP, 50% to manufacturing output of the country and 42% to nation’s exports.
- They are found to be more efficient in providing more employment opportunities at relatively low cost.
- Ancillary to large Industries:
- Mass consumption goods like stationery items, domestic utensils, household goods, food products, furniture, etc all are supplied by the small scale industries.
- Shiners from a large crowd:
- Large industries through portray major contribution showing bulk and enormous production, fruits of percolation of economic growth from small industries are visible.
- While the large enterprises largely created the ground of prosperity in the ocean, small enterprises have succeeded in fulfilling the socialistic goals of providing equitable growth.
- Steps in international market:
- Over the years, this sector has progressed from the production of simple consumer goods to the manufacture of many precious products like electronics control systems, microwave components, electro-medical equipments, etc.
- These products were imported from global market, but with skilled labour and emergence of small industries, they are made in India and available at cheaper rate than in international market.
The government has taken some measures and launched some schemes for revival of this sector but the biggest problem is large number (in fact more than 70%) of enterprises are unregistered and therefore they are outside of the umbrella of government schemes.
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