MSMEs are designed to serve as the driving force of innovation in any nation. Their size and strategic position make them ideal for developing engines, components, and connections that large enterprises can then commercialize to introduce groundbreaking products and services.
Micro, Small, and Medium Enterprises (MSMEs) serve as the innovation engine in any global economy. Over the last 25 years, they have contributed to creating 12.9 million jobs in the US, representing 66% of employment growth and nearly two-thirds of new private sector jobs. In China, SMEs make up 99% of all enterprises, contributing to at least 60% of the country’s GDP and generating over 82% of employment opportunities.
India is known as the largest SME market globally, with 75 million registered SMEs, expected to increase to 95 million or more in the coming years. In the fiscal year 2021-2022, MSMEs contributed to 29% of India’s GDP, representing 45% of total industrial production and 40% of total exports valued at $200 billion in 2022-23. Despite significant efforts by both central and state governments in India to support MSMEs, the actual impact falls short of the intended goals, with nearly 13,000 SMEs shutting down in just the last financial year.
MSMEs are designed to serve as the driving force of innovation in any nation. Their size and strategic position make them ideal for developing engines, components, and connections that large enterprises can then commercialize to introduce groundbreaking products and services. There is a significant global opportunity for MSMEs, particularly in India, to revitalize their role in the innovation ecosystem and counter the decline in their relevance. This involves integrating new materials like Nano, Biotech, and network technologies, as well as adopting new resources such as 3D/4D printing, Internet of Things (IoT), scanners, sensors, robotics, and renewable energy sources like wind, solar, and nuclear power.
