Over the past few decades, MSMEs (Micro, Small, and Medium Enterprises) have actively participated in the development and industrialisation of the nation. With changing times, the MSME sector is geared up to adopt better measures and act as a catalyst for economic development. With an estimated 63.4 million units spread throughout the country, MSMEs are contributing to the growth of the nation. According to a recent report, they contribute around 6.11 per cent of the manufacturing GDP and 24.63 per cent of the GDP from service activities as well as 33.4 per cent of India’s manufacturing output. MSMEs alone provide employment to around 120 million individuals.
Considered a strong driving force in the Indian economy, the MSME sector is growing and becoming more significant. The unparalleled role that the MSME sector plays in the country’s growth is paving the way for a brighter economic future. In India, where a large population resides in rural areas, MSMEs play the most influential role by generating employment and ensuring that every region sees industrial expansion and development. As MSMEs usher in development of rural and remote regions, they create employment opportunities and build a skilled workforce. This also limits economic imbalances among geographical areas, reduces migration to urban cities and promotes an equitable distribution of wealth in the country.
MSMEs are fostering a leading role in encouraging and expanding innovation and entrepreneurship thereby accelerating socio-economic growth and regional development. The sector is also driving innovation across varied domains to cater to not only domestic but also global demands. These efforts also boost the Make in India vision that seeks to make India self-reliant. Since the Make in India initiative took off in September 2014, the manufacturing component seems to be moving full steam ahead. As per the survey conducted by a chamber of commerce and industry, the country has what it takes to be a global manufacturing hub.
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MSMEs are on course to economic excellence. With digital transformation occurring at a fast pace, making the most of technological offerings is the way forward for the MSME sector. Inculcating skill development is another step to take the sector to greater heights. Last but not the least, ease in acquiring credit is bound to eliminate many barriers for the sector and will empower the MSMEs to unleash their potential.
Views expressed by Rohan Juneja, MD & CEO, TruCap Finance
