New Delhi: The Micro, Small, and Medium Enterprises (MSME) sector in India has continued to demonstrate resilience and growth, as per the latest information received from the ministry of statistics & programme implementation and the Directorate General of Commercial Intelligence and Statistics (DGCIS), said minister of state for micro, small, and medium enterprises, Bhanu Pratap Singh Verma.
In a written reply in the Rajya Sabha, the minister said, according to the data presented by the Ministry of Statistics & Programme Implementation, the share of MSME Gross Value Added (GVA) in India’s Gross Domestic Product (GDP) displayed a fluctuating trend over the last three years. In the fiscal year 2019-20, the share stood at 30.5%, which slightly declined to 27.2% in 2020-21 but rebounded to 29.2% in 2021-22. Similarly, the share of MSME manufacturing output in the overall Indian manufacturing output remained relatively stable, accounting for 36.6%, 36.9%, and 36.2% during the fiscal years 2019-20, 2020-21, and 2021-22, respectively.
The export of MSME specified products also showed a similar pattern. Data from the Directorate General of Commercial Intelligence and Statistics indicated that the share of MSME products in India’s total exports experienced a decline over the past three years. In the fiscal year 2020-21, MSME products constituted 49.4% of India’s exports, which decreased to 45.0% in 2021-22 and further to 43.6% in 2022-23.
Furthermore, the MSME sector has been a significant source of employment in India. As of August 2, 2023, the Udyam Registration Portal reported that the total number of persons employed in MSMEs registered between July 1, 2020, and August 1, 2023, amounted to an impressive 12,36,15,681. A detailed state-wise breakdown of employment figures can be found in annexure I.
To foster the growth and development of the MSME sector, the ministry of micro, small and medium enterprises has been implementing various schemes and programmes. These initiatives encompass a wide range of areas, including credit support, new enterprise development, formalization, technological assistance, infrastructure development, skill development and training, and market assistance to MSMEs.
The schemes/programmes inter alia include prime minister’s employment generation programme (PMEGP), credit guarantee scheme for micro and small enterprises (CGTMSE), micro and small enterprises-cluster development programme (MSE-CDP), entrepreneurship skill development programme (ESDP), procurement and marketing support scheme (PMS) and national SC/ST hub (NSSH).
The government has also taken several recent steps to provide further support to the MSME sector, such as the Rs. 5 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS), Rs. 50,000 crore equity infusion through the MSME Self-Reliant India Fund, and the inclusion of Retail and Wholesale trades as MSMEs. Additionally, initiatives like the online portal “Champions," non-tax benefits for upward changes in MSME status, and the Raising and Accelerating MSME Performance (RAMP) program have been introduced to bolster the sector’s growth.
The launch of the Udyam Assist Platform (UAP) on January 11, 2023, has been another significant milestone. This platform aims to bring Informal Micro Enterprises (IMEs) under the formal ambit, enabling them to avail benefits under Priority Sector Lending (PSL).