In the vast Indian economy, Micro, Small and Medium Enterprises (MSMEs) has played an important role in uplifting and bolstering it in the long term. The MSMEs are essentially branching out in different sectors and delivering a wide spectrum of services, meeting the demands of international as well as national markets.
According to Central Statistics Office’s (CSO) report, the MSMEs’ contribution in GDP (Gross Domestic Product) has surged from INR 8.7 million crore in 2012 to INR 15 million crore at 2017.
MSMEs Extending its Roots
Besides leveraging India’s GDP, it helps provide a large number of job opportunities at a low cost as compared to large-sized organisations. Decrementing regional imbalances, ensuring equal distribution of income and affluence, and industrialising rural regions are some of the attributes of MSME sector.
Seeing the participation of MSMEs in distinct segments, National Sample Survey (NSS) reported that during 2015-16, there were 633.88 lakh unincorporated non-agricultural MSMEs in the country engaged in different economic activities (196.65 lakh in Manufacturing, 0.03 lakh in Non-captive Electricity Generation and Transmission4 , 230.35 lakh in Trade and 206.85 lakh in Other Services) excluding those MSMEs registered under (a) Sections 2m (i) and 2m (ii) of the Factories Act, 1948, (b) Companies Act, 1956 and (c)construction activities falling under Section F of National Industrial Classification (NIC).
Assessing the employment generation attribute, MSME has created concertedly 11.10 crore jobs in rural as well as urban regions across India. It has generated 360.41 lakh job opportunities in manufacturing, 387.18 lakh in Trade and 362.22 lakh in Other Services and 0.07 lakh in Non-captive Electricity Generation and Transmission, according to NSS Survey.
Amid all provinces, Uttar Pradesh has the largest count of MSMEs in the nation, aggregating to 14.20 per cent. West Bengal is the second state having the largest MSMEs with a stake of 14 per cent. Other states having a vast number of MSMEs are Tamil Nadu (8 per cent), Maharashtra (8 per cent), Karnataka (6 per cent), Bihar (5 per cent), Andhra Pradesh (5 per cent), Gujarat (5 per cent), Rajasthan (4 per cent) and Madhya Pradesh (4 per cent).
Surge in MSME Sector
Calibrating the progress of MSME sector, the count of MSMEs has notably increased by 6.43 per cent since 2007. In manufacturing segment, businesses have increased to 196.65 lakh in 2016 from 115 lakh in 2007. In the services sector, an increase of 6.56 per cent has happened from earlier 246.76 lakh in 2007 to 437.23 lakh in 2016.