The Indian Growth Story
MSME sector plays a crucial role in generating large employment opportunities at a comparatively lower capital cost as compared to bigger industries. Since MSME’S generally operate from small towns, they assist in the industrialisation of backward and rural areas. However, at the same time these MSMES complement the large industries as well.
The sector consists of 36 million units and provides employment to over 80 million people, according to a report published by the MSME Ministry in 2016. Producing more than 6,000 products, the contribution of MSMES to the national GDP is 8 per cent. The sector also contributes 45 per cent to total manufacturing output and 40 per cent to export.