Poised for Growth- The MSME Sector at a Glance

6 min read
  1. Minister of Micro, Small and Medium Enterprises (MSME) has said that in order to give a boost to the MSME sector, the Ministry would identify goods being imported by India and evaluate those that could be manufactured locally by MSMEs.
  2. The Micro- Small and Medium Enterprises (MSMEs) are small sized entities, defined in terms of their size of investment. The MSMEs are classified in terms of investment made in plant and machineries if they are operating in the manufacturing sector and investment in equipment for service sector companies.
  3. However, MSME (Amendment) Bill, 2018 which has not been passed yet proposes a uniform classification for all MSMEs. Under the Bill, all MSMEs, whether they are manufacturing or service-providing enterprises, will be classified on the basis of their annual turnover.
  4. As per the MSME Ministry’s 2017-18 report, there are over 6 cores MSMEs in India. Of these, micro enterprises comprise the highest percentage. Further, rural enterprises are higher in number than urban.
  5. Uttar Pradesh has the largest number of estimated MSMEs with a share of 14.2% of MSMEs in the country.
  6. MSME’s employ about 11 crore people across India. Though the number of rural enterprises is higher, urban MSMEs employ about 23% more people than rural ones.
  7. The share of MSME in India’s GDP was 28.77% in the year 2015-16.

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