China tops the list when it comes to MSMEs and India has the second-largest base of MSMEs.
MSME quarter is a means of propulsion for the Indian economy. It can boost industrialization throughout the country.
About 40 percent of India’s total exports come from MSMEs. It contributes to 45 percent of India’s overall manufacturing. Also, above 40 percent of our workforce are employed in MSMEs.
The economy of India dreams to be one of $5 trillion by FY25. There have been profusing initiatives from the Government as well as the industry to make the best use of this opportunity.
There was a prophecy that nearly a quarter of the GDP will be contributed by the MSMEs by 2020. However, covid hit everyone badly and the pace of growth of MSMEs slowed down.
At present, 17 percent of the GDP of India is provided by MSMEs.
MSMEs are going to play a crucial role in the Indian economy for the coming three financial years. First of all, the micro-level results of MSMEs are praiseworthy. 6.3 crore functional MSMEs are present in India and is a big brother when it comes to employment.
As employment opportunities increase, poverty will be reduced, literacy will be increased and the living standard of people will be improved. Along with the continuous growth of MSMEs, regional development, exports, and quality of life of employees and their families have improved or increased at a fast pace.
Also, Union Minister for MSMEs Narayan Rane asserted certain officers to further build the process of development of MSMEs. Ministry has been spending largely for the improvement of society. He said that MSMEs can give a quantum jump to India’s exports. The equity funding challenges of MSMEs may be dealt with by Corporisation.
SMEs are also star boosters. 80 percent of India’s business comes from SMEs. Over 8,000 varieties of value-added goods are produced by SMEs.
India can be the centre for global entrepreneurial operations and the holistic development of the SMEs will be an addition to it.
MSMEs and SMEs are important to achieve India’s economic goals.