What is MSME sector-It is micro small and medium enterprises which are 65 million? How much jobs they create- it is about 120 million and accounts for 30% of the country’s economic output.
One cannot ignore the importance of MSME as it forms the backbone of Industrial landscape of the country that contributes 49 per cent to the exports and 45 per cent to the manufacturing sector and also responsible for 30 per cent of total employment generation in India.
It complements the large sector and with a low-cost enterprise that it creates the largest employment next to the agriculture sector. The MSME sector is producing a diverse range of products and services to meet the demand of domestic as well as international market.
What NSS ( national sample survey) says, one of the data from 73 round states that it will further emphasize the significance of the MSME sector in India. During 2015-16 MSME sector is creating 11:10 crores jobs in different sector namely-: manufacturing sector 360.41 lacs,387.18 lacs in trade and 0.07 lacs in non-captive electricity generation and transmission, and 362.82 lacs jobs in other services in both rural and urban areas across the country.
Is government serious about the MSME sector, the government Start-up initiative helping the ideas and entrepreneurship in the recent past?
What is the scenario of job in India-: India needs 6-7 million jobs a year and global data shows that it is the MSMEs including startup (not large enterprise) that creates net new jobs in any country, Startup is also the centre of innovation and are a great way to enhance employment creation in the economy.
India can boast of the third largest number start-up globally.
Challenges of the MSMEs-: The sector has exhibited consistent growth over the last few years, but it has done so in a constrained environment often resulting in inefficient resource utilization. Of the many challenges impeding the growth and development of MSMEs, inadequate access to financial resources is one of the key bottlenecks that make these enterprises vulnerable, particularly in periods of economic downturn.
Description-:Micro Enterprises upto Rs. 25Lakh,Small Enterprises above Rs. 25 Lakh & upto Rs. 5 Crore,Medium Enterprises above Rs. 5 Crore & upto Rs. 10 Crore.
Service Enterprises – Investment in Equipments-: Micro Enterprises upto Rs. 10Lakh, Small Enterprises above Rs. 10 Lakh & upto Rs. 2 Crore,Medium Enterprises above Rs. 2 Crore & upto Rs. 5 Crore