According to Minister of State for Micro, Small, and Medium Enterprises, Bhanu Pratap Singh Verma, the Micro, Small, and Medium Enterprises (MSME) sector in India has shown remarkable resilience and growth. The data received from the Ministry of Statistics & Programme Implementation and the Directorate General of Commercial Intelligence and Statistics (DGCIS) highlights the sector’s performance over the past few years.
In the fiscal year 2019-20, the share of MSME Gross Value Added (GVA) in India’s Gross Domestic Product (GDP) was 30.5%. This figure slightly decreased 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 at 36.6%, 36.9%, and 36.2% during the fiscal years 2019-20, 2020-21, and 2021-22, respectively.
However, the export of MSME specified products witnessed a decline over the past three years. In the fiscal year 2020-21, MSME products accounted for 49.4% of India’s total exports, which decreased to 45.0% in 2021-22 and further to 43.6% in 2022-23.
The MSME sector has played a crucial role in generating employment opportunities in India. As of August 2, 2023, the Udyam Registration Portal reported an impressive 12,36,15,681 persons employed in MSMEs registered between July 1, 2020, and August 1, 2023.
To support and foster the growth of the MSME sector, the Ministry of Micro, Small and Medium Enterprises has been implementing various schemes and programmes. These initiatives cover credit support, new enterprise development, formalisation, technological assistance, infrastructure development, skill development and training, and market assistance for MSMEs.
Some of the notable schemes and programmes include the 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 taken additional 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. 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.
A significant milestone in this direction was achieved with the launch of the Udyam Assist Platform (UAP) on January 11, 2023. This platform aims to bring Informal Micro Enterprises (IMEs) into the formal sector, enabling them to access benefits under Priority Sector Lending (PSL).