June 27 is the International Day for MSMEs.
MSME or Micro, Small, and Medium Enterprises assume significance for a country like India. As the backbone of the country’s growth, they contribute to over 50% of exports and constitute 29% of the GDP. Experts have noted that MSMEs have a role in boosting the economy.
We look at three reasons why MSMES are crucial for India:
Women powering MSMEs: In the last year, there has been an increase in the number of MSMEs led by women. Reports say there was a 75% growth to 8.59 lakh units from 4.9 lakh units in this period. Empowering women is key to ensuring innovation and employment of more women in the sector. However, challenges remain for women – like the need for formal finance to digital solutions.
Contribute to employment: MSMEs are capable of ensuring employment across sectors. With Make in India becoming a huge success, the entrepreneurial dreams of many have found wings in the MSME sector. With India producing a large pool of graduates every year, MSMEs have the potential to absorb them, providing employment.
The overall growth of sectors: MSMEs contribute to manufacturing, exports, and jobs, benefitting other industries. They bridge the gap between small and large companies, and with the implementation of GST, they contribute to government revenue.
