Overview of the MSME Sector

The Micro, Small and Medium Enterprises (MSME) sector contributes significantly in the economic and social development of the country by promoting entrepreneurship & generating large employment opportunities.

Out of the 6.3 crore MSMEs, the number of registered MSMEs stood at 80.16 lakh units as on March 31, 2022. Further, 64% of the registered MSMEs were service enterprises & 36% were manufacturing units.

Micro sector enterprises accounts for more than 99% of total MSMEs,out of which 608.41 lakh MSMEs (95.98%) are proprietary concerns.

GoI has announced on 1st June, 2020 the revised definition of MSME:

             Criteria (both)

Category

Investment (P & M)

Annual Turnover

Micro

 ₹ 1   Crore

₹ 5     Crore

Small

₹ 10  Crore

₹ 50   Crore

Medium

₹ 50  Crore

₹ 250  Crore

Why MSME is important for Indian Economy?

Contributes ~ 30% to India’s GDP

Employs ~ 11 crore people

Constitutes ~ 49% of total exports

Industrialization of Rural & Backward areas ~ 51% of MSMEs are in Rural Area

Complementary to Large Industries as Ancillary Units

Huge potential to boost Self –Reliance (Atmanirbhar Bharat)