1 October 2021, 03:10 PM

MSMEs; the growth drivers contribute 30.3% to India’s GDP

MSMEs; the growth drivers contribute 30.3% to India’s GDP

“Big things have small beginnings.” If this famous quote of T E Lawrence referred to the impact of a small Bedouin army on the war against the Turks in Lawrence of Arabia, it is equally true in today’s busy and competitive environment. Admittedly, a small business unit rarely turns out to be a giant monolith but small businesses together have enormous potential to contribute to the national economy. And they are doing exactly that in India.

The Indian economy primarily relies on two areas, agriculture and manufacturing. While the first one has generally stayed unorganised, the second one which is backed by small enterprises has gradually come into the limelight, with expanded concentration from the public authority and other government organizations, corporate bodies and banks. Strategy-based changes; interests in the area; the opening up of the economy to the world and the development of the rapid growth of the financial sector have opened up new business opportunities for this sector.

The Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the years. It contributes significantly in the economic and social development of the country by promoting entrepreneurship and generating large employment opportunities at comparatively lower capital cost, next only to agriculture. MSMEs are complementary to large industries as ancillary units and this sector contributes significantly in the inclusive industrial development of the country. The MSMEs are widening their domain across sectors of the economy, producing a diverse range of products and services to meet demands of domestic as well as global markets. They have become a big partner in the country’s export growth.

MSME in Indian economy