Skip to main content

Importance of MSME Sector In India -Saurav Dasgupta

Image
By


Micro, Small and Medium Enterprises (MSME) sector is a very important piece of India’s legacy economic model and a part of the critical supply chain for products and services. This sector is considered as the job creator and plays a crucial role in providing large-scale employment and industrialization of rural and backward areas. As per the National Sample Survey (NSS) 73rd round, in 2015-2016, there were around 633.8 lakh unincorporated non-agriculture enterprises in the country which are dealing in different economic activities providing employment to 11.10 cr workers.

MSME has introduced in the year 2006 in India. There are still some service sectors that were not yet included in this sector was included in the definition of the Micro, Small and Medium-sized Enterprises making a historic change to this Act.

The Importance of MSME in India has been described below:

1) It creates large-scale employment: Enterprises that are inclusive in this sector require low capital to start up new business. Moreover, it creates a vast opportunity for the unemployed people to avail. India produces about 1.2 million graduates per year out of which the total number of engineers are around 0.8 million. There is no economy so far that could provide that large number of fresher’s in one year only. MSME is the boon for the fresh talent in India.

2) Economic stability in terms of Growth and leverage Exports: It is the most significant driver in India contributing to the tune of 8% to GDP. Considering the contribution of MSME to manufacturing, exports, and employment, other sectors are also benefitting from it. Nowadays, MNCs are buying semi-finished, and auxiliary products from small enterprises,  It is helpful in creating a linkage between MSME and big companies even after the implementation of the GST 40% MSME sector  that plays an important role to increase the government revenue by 11%. 

3) Encourages Inclusive Growth: The inclusive growth is at the top of the agenda of Ministry for Medium, and small and Medium-sized enterprises for several years. On the other hand, poverty and deprivation are a deterrent to the development of India. Besides, it includes marginalized sections of a society which is a key challenge lying before the Ministry of MSME.

·   Simple Management Structure for Enterprises: MSME can start with limited resources within the control of the owner. 

According to the MSME Ministry’s FY19 annual report, the MSME sector is dominated by micro-enterprises. India has 6.33 crore MSMEs out of which 6.30 crore -- 99.4 per cent are micro-enterprises.

The number of registered MSMEs in FY20 has increased by 18.49 per cent to 25.13 lakh units from 21.21 lakh in FY19, according to government data. While an increase in the registered number of small businesses would help the government in measuring their contribution to the sector’s share in the country’s GDP along with offering various tax and investment benefits, the current scenario of Coronavirus outbreak might impact MSMEs hard given the disruption caused in the supply chain, warehousing, export credit etc. So Govt Of India announced 3 lakh cr collateral free loans to the sector and that will be a moratorium of 12 months on payment of Principal. Government also announced making a provision of Rs.20000 crores and to provide a support of Rs. 4000 crores for this purpose.

 

 

 

 

 

 

 

 


Comments

Post a Comment

Popular posts from this blog

Upskill & Reskill , To succeed.- Puja Sinha ( HR- APML )

By
"Success is when I add value to myself." ~ John Maxwell   They say an empty mind is a devils mind. Why do you think they said that? In the situation nowadays, there is lack of positivity around the globe. Instead of thinking "It will end soon," people are thinking "The world is going to end! We all are going to die!" Negative thinking affects your mental health. In the era of workouts and physical fitness, there is some sense of lack in mental fitness. You need to have faith, believe that every ending has a beginning; it’s just that you need to trust the process. So in this crises what i have found is that the students who are in their final years and the students who are waiting for their joing letters are stressed and disturbed . they are worried   thinking about whether they will get a job or not. Well, as we all know that The pandemic has almost left us high and dry. Industry experts have predicted economic downfall, which has lead to job...
34 comments
Read more

Life Jhingalala In Lockdown- Aditi Chanda( PGDM Student at IMIS)

By
The direct to home operator. Tata Sky came up with different shows for all types of viewer segment so as to reach out the entire population on the ground of their service (shows), their pricing, their language preference and their reach to the end customers. They have worked upon different marketing mix front to stay relevant at this time of Covid-19 pandemic. When the entire nation went into a lockdown the best way to stay calm and entertain oneself was the telecommunication. At this point of time Tata Sky came up with variety of shows to entertain the mass and build its presence amongst all. Tata Sky partnered with Shemaroo entertainment to offer crime, thriller, & horror content. They not only came up with show like Ahaat, Karamchand, Gangster etc. but also targeted other mass of viewers who are interested in popular Hindi stories from magazines “Manohar Kahaniyan”. These stories were based on true events. They made these services available in Tata Sky app too. For the conveni...
24 comments
Read more

Importance of Suraksha Outlet- Subham & Arka ( PGDM Students at IMIS)

By
The sudden strike of Covid-19 pandemic, has stopped the operations in each sector, including necessary FMCG sector. Some of the FMCG goods along with medicine and food are minimum necessary requirements for people. Moreover a large portion of the population is employed in these sector and the survival of Agricultural sector is also depend on it. Suraksha outlet is an initiative by our India government to help the citizen to get Covid free supply outlet everywhere and every corner of the country . Because of Covid 19 there is a   fear in mind of the consumer to go in the market to purchase their there daily essential goods but this suraksha outlet which is brought by our govt will help our citizen to do   fearless and safe shopping. Suraksh outlet is an enrolment process where every large to small shopkeeper have to do enrolment in that www.surakshaoutlet.com website to ensure that there outlet is Covid free and they are taking necessary care and precaution to take car...
8 comments
Read more