MSMEs: Strong Pillars Of Indian Economy
Despite the ravages of Covid-19, India has secured fifth place in the World's largest economy index. Over 100 million Micro, Small and Medium Enterprises (MSMEs) employ 40 per cent of the workforce under the Prime Minister's Employment Generation Programme (PMEGP).
"MSMEs are the backbone of the Indian economy as they contribute 30 per cent of the total GDP of the Indian economy. 48 per cent of the exports also come from MSME and, up till now, it has been able to generate 11 crore jobs in the country, "said Nitin Gadkari, Union Minister of Road Transport in 2020.
To accelerate the MSMEs sector, the government has implemented the "Make in India" or "Atmanirbhar Bharat" initiative in 2020.
MSMEs in India
On 9 May 2007 former Ministry of Small Scale Industries and the Ministry of Agro and Rural Industries merged into the Ministry of Micro, Small and Medium Enterprises.
The merger happened to design and promote policies, facilitate programs, projects, and schemes and monitor their implementation to support MSMEs.
The Importance of World MSME Day
27 June was declared ‘World MSME Day’ by the United Nations General Assembly to celebrate the micro, small and medium-sized enterprises and to appreciate their tremendous support towards the economy and United Nations Sustainable Development Goals.
MSME Day is marking its fifth anniversary this year at the International Trade Centre. The UN states that due to the pandemic and climate crisis, these industries are trapped in a difficult situation, which has caused them to suffer a great loss.
At the UN's 74th plenary session on 6 April 2017, it declared 27 June as 'World MSME Day' to attain sustainable objectives and to encourage entrepreneurship through innovation, creativity, and sustainability. The UN has organised an event on 27 June 2022- ‘Resilience and Rebuilding: MSMEs for Sustainable Development. It will explore how these industries are purpose-driven and how social entrepreneurship contributes to growth, decreasing inequalities, and building a thriving economy.
India's manufacturing industry depends heavily on MSMEs. A lack of MSMEs would lead to a loss of jobs and exports in manufacturing. Approximately one-third of MSMEs operate in manufacturing or 20 million units throughout India. MSMEs' diversity can be as diverse as their services, ranging from high-tech startups to low-tech workshops.
