MSME in India
Micro, Small, and Medium Enterprises (MSMEs) form the backbone of India’s economy, contributing significantly to GDP, employment, and exports. Governed by the MSME Development Act, 2006, these enterprises promote inclusive growth and rural industrialization.
Classification of MSMEs effective July 2020:
1. Micro Enterprises:
- Investment: Up to ₹1 crore
- Turnover: Up to ₹5 crore
2. Small Enterprises:
- Investment: Up to ₹10 crore
- Turnover: Up to ₹50 crore
3. Medium Enterprises:
- Investment: Up to ₹50 crore
- Turnover: Up to ₹250 crore
Key Contributions:
GDP Contribution:
Accounts for approximately 30% of India’s GDP.
Employment Generation:
Employs over 110 million people, second only to agriculture.
Exports:
Contributes about 40% to India’s total exports.
Government Support:
The government has launched various initiatives, including:
- Prime Minister Employment Generation Programme (PMEGP) for financial support.
- Technology Upgradation and Quality Certification schemes.
- Skill Development Programs to enhance workforce capabilities.
MSMEs are vital for fostering entrepreneurship, regional balance, and innovation, making them a cornerstone of India’s economic growth and self-reliance.