Role of MSME Sector in the Country

August 8, 2023 India Ties Finance, General Comments Off on Role of MSME Sector in the Country

Aug 08: As per the latest information received from the Ministry of Statistics & Programme Implementation, the share of MSME Gross Value Added (GVA) in all of India’s Gross Domestic Product (GDP) during the year 2019-20, 2020-21 and 2021-22 was 30.5%, 27.2% and 29.2% respectively. The share of MSME manufacturing output in all India Manufacturing output during the year 2019-20, 2020-21 and 2021-22 was 36.6%, 36.9% and 36.2% respectively.

As per the information received from the Directorate General of Commercial Intelligence and Statistics (DGCIS), the share of export of MSME specified products in all India exports during the year 2020-21, 2021-22 and 2022-23 was 49.4%, 45.0% and 43.6% respectively.

As of 02.08.2023, as per Udyam Registration Portal, the total number of persons employed in MSMEs that were registered from 01.07.2020 to 01.08.2023 in India was 12,36,15,681. The State/UT-wise details are attached as Annexure I.

The Ministry of Micro, Small and Medium Enterprises implements various schemes for the growth and development of the MSME sector in the country in areas of 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 taken a number of recent initiatives to support MSMEs in the country, including;

  1. Rs. 5 lakh crore Emergency Credit Line Guarantee Scheme (ECLGS) for businesses, including MSMEs.
  2. Rs. 50,000 crore equity infusion through MSME Self-Reliant India Fund.
  3. Newly revised criteria for the classification of MSMEs.
  4. No global tenders for procurement up to Rs. 200 crores.
  5. Launching of an online Portal “Champions” in June 2020 to cover many aspects of e-governance including grievance redress and handholding of MSMEs.
  6. Inclusion of Retail and Wholesale trades as MSMEs w.e.f. 02nd July 2021.
  7. Non-tax benefits are extended for 3 years in case of an upward change in the status of MSMEs.
  8. Roll out of Raising and Accelerating MSME Performance (RAMP) programme with an outlay of Rs. 6,000 crore over 5 years.
  9. Launch of Udyam Assist Platform (UAP) on 11.01.2023 to bring the Informal Micro Enterprises (IMEs) under the formal ambit for availing the benefit under Priority Sector Lending (PSL).

State/UT wise Total no. of persons employed in MSMEs Registered Under Udyam Registration Portal

S.No.State/UT Name2020-21*2021-222022-232023-24#Total
1ANDHRA PRADESH709811123131127454957275685414185
2ARUNACHAL PRADESH146942015235406867778929
3ASSAM2349635614979569123943412147713
4BIHAR694423144744021757146066254924202
5CHHATTISGARH2827103984145564531620311399608
6GOA64757592658245521968228445
7GUJARAT2466078224119424395548221687968994
8HARYANA1284400117543212558924650054180729
9HIMACHAL PRADESH140826175196199516118312633850
10JHARKHAND3796806833469220572468182231901
11KARNATAKA19572732757427357811213115079604319
12KERALA6749747638468514072364642526691
13MADHYA PRADESH826879140097118230415241484575039
14MAHARASHTRA445845145661304890908144286215358351
15MANIPUR9117611805814718317365373782
16MEGHALAYA734018757311281160668831
17MIZORAM9499206066921518488117808
18NAGALAND791626062462271868198886
19ODISHA57623695860012959344068233237593
20PUNJAB91364593470411613084815523491209
21RAJASTHAN1547664245747828160878312027652431
22SIKKIM34121042915247748836576
23TAMIL NADU333523640549344662649147486013527679
24TELANGANA1648221198257926775138754187183731
25TRIPURA151968373717928733383311603
26UTTAR PRADESH209095128325124171713220967511304851
27UTTARAKHAND2172104031774015911247211146699
28WEST BENGAL1107009204984929326847525106842052
29ANDAMAN AND NICOBAR ISLANDS10248173158357825491224679
30CHANDIGARH103597679306916319223259913
31DELHI1333992118980112364408149904575223
32JAMMU AND KASHMIR1909023856086985512346691509730
33LADAKH49781148413779375133992
34LAKSHADWEEP22081113752122618
35PUDUCHERRY39392557115725921212173574
36THE DADRA AND NAGAR HAVELI AND DAMAN AND DIU66442476434278312397169265
 Total27510401353652494527582015464211123615681
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