Role of Micro Small and Medium Enterprises (MSME) in Employment Generation in India

Abstract

The importance of 65 million MSMEs, which account for about 120 million jobs and 30% of the country’s economic output, cannot be underestimated as it forms the backbone of the industrial landscape of the country contributing 49 % to the exports and 45% to the manufacturing sector and also responsible for around 30% of total employment generationin India.The Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last fewdecades. It contributes significantly in the economic and social development of the country by fostering entrepreneurship and generating largest employment opportunities at comparatively lower capital cost, next only to agriculture. MSMEs are complementary to large industries as ancillary units andthis sector contribute significantly in the inclusive industrial development of the country.