Ease of Doing Business for MSMEs: On August 30, 2000, the government had reportedly launched an extensive policy package for small industry and since then the National Small Industry Day is observed in the country.
Ease of Doing Business for MSMEs: The National Small Industry Day is observed annually on August 30 to celebrate the contribution made by the small-scale industry to India’s growth. On August 30, 2000, the government had reportedly launched an extensive policy package for small industry and since then the National Small Industry Day is observed in the country. Small Scale Industry (SSI) registration is used interchangeably with micro, small, and medium enterprise (MSME) registration while the MSME Development Act 2006 enables the promotion and development of MSMEs or SSIs and also provides for improving their competitiveness.
In contrast, the MSME Day observed on June 27 every year is designated by the United Nations General Assembly (UNGA) to increase public awareness about the contribution of MSMEs to sustainable development and the world economy. The world celebrates the MSME Day after a resolution was passed in UNGA in 2017. Formal and informal MSMEs make up over 90 per cent of all companies and have a share of, on average, 70 per cent of total employment and 50 per cent of GDP worldwide, according to a UN blog.
The government of India had merged the former Ministry of Small-Scale Industries and the Ministry of Agro and Rural Industries back in 2007 to set up the Ministry of MSME. While the share of Indian MSMEs in the country’s GDP has been around 30 per cent before the pandemic, it dropped to 26.83 per cent during FY21, according to the data shared by Minister of State for MSMEs Bhanu Pratap Singh Verma in the Lok Sabha in July this year.
Likewise, MSMEs’ share in India’s merchandise exports declined to 45.04 per cent in FY22 in comparison to 49.75 per cent during FY20 and 49.35 per cent during FY21. However, MSME exports had surged 21.8 per cent from $155.9 billion during FY20 and 31.9 per cent from $143.9 billion during FY21 to $190 billion during FY22. The decline had come in the backdrop of the government’s target, as announced by former MSME Minister Nitin Gadkari in 2020, to increase MSMEs’ share in exports to 60 per cent from 48 per cent and 5 crore additional jobs apart from the jump in GDP share to 40 per cent by 2025.