What Next For MSMEs Post Covid-19

MSME Background India is having the largest base of Micro, Small, and Medium Enterprises (MSMEs) in the world after China. The sector is engaged in the manufacturing of varied products - ranging from traditional to hi-tech items and provides a wide range of services.

- Suraj Kumar Shoundik

According to the latest available Annual Report (2018-19) of the Department of MSMEs, there are 6.34 crore MSMEs in the country. Out of these, 51% of MSMEs are situated in rural India. Together, they employ a little over 11 crore people but 55% of the employment happens in the urban MSMEs.

The MSMEs in India play a crucial role by providing huge employment opportunities at comparatively lower capital cost as compared to large industries as well as through industrialization of rural & backward areas, inter alia, reducing regional imbalances, assuring more equitable distribution of national income and wealth.

MSME forms the backbone of the Indian economy and is one of the most important segments that let the economy grow by leap and bounds. The sector which provides employment to over 114 million people and contributes to more than 30 per cent of the GDP.

In terms of geographical distribution, the top 10 states together accounted for 74.05% of the total estimated number of MSMEs in the country. These are Uttar Pradesh (14.20%), West Bengal (14%), Tamil Nadu (8%), Maharashtra (7.60%), Karnataka (6%), Bihar (5.40%), Andhra Pradesh (5.30%), Gujarat (5.20%), Rajasthan (4.20%) & Madhya Pradesh (4.20%). With the government 'Make in India' push, along with a push to attract greater FDI, MSMEs sector is set for rapid growth and integration with major global value chains.