How Are MSMEs Significantly Contributing to India’s GDP?

Mumbai, July 4 (NationPress) Highlighting that India ranks as the fourth-largest economy globally, Union Minister of Micro, Small and Medium Enterprises (MSMEs) Jitan Ram Manjhi stated that MSMEs account for 30.1 percent of the nation’s GDP, 35.4 percent of manufacturing, and 45.73 percent of exports. He emphasized that alongside the agriculture sector, MSMEs will be pivotal in propelling India to become the third-largest economy by 2029.

According to Jitan Ram Manjhi, the MSME sector plays a crucial role in generating employment for entrepreneurs with smaller investments compared to larger industries. It also focuses on offering training to new entrepreneurs from Scheduled Castes and Scheduled Tribes in both rural and urban settings, facilitating loans with bank guarantees.

“The Udyam portal is instrumental for new entrepreneurs employed by the MSME department, enabling them to register and receive assistance through Udyam Assist. This includes training, obtaining bank loans, and launching businesses. To date, the MSME department has facilitated employment for 34 crore unemployed individuals in the country, fulfilling Prime Minister Narendra Modi's vision of providing jobs to 22 crore people,” stated the minister.

He mentioned that small businesses benefit from the Pradhan Mantri Vishwakarma Yojana, receiving training through the MSME department and initial funding of Rs 15,000 to establish their ventures.

Depending on their business type, quality, and standards, they can receive aid ranging from Rs 1 lakh to Rs 4 lakh. The minister also noted that financial independence is being fostered by promoting local entrepreneurship.

“The Prime Minister's Employment Guarantee Scheme is active in both urban and rural areas, providing self-reliance opportunities for women and youth. Loans are offered post-training for those registered on the Udyam portal. To date, 80.33 lakh jobs have been generated under this scheme,” the Union Minister elaborated.

He added that 80 percent of these jobs have been created in rural areas, with 20 percent in urban zones. The MSME department is dedicated to empowering women and fostering youth self-reliance, providing trained unemployed youth with guarantees up to Rs 5 crore under the Credit Guarantee Scheme for large industries, resulting in a surge of new entrepreneurs.

The minister remarked that the National SC-ST Hub operates under the Ministry of MSME to support SC and ST community entrepreneurs in their business endeavors.

The aim is to establish procurement policies and market access opportunities. They benefit from government initiatives, financial support, and loans, with the government purchasing goods from them when market demand is low. So far, goods worth Rs 3,500 crore have been procured, he added.

Jitan Ram Manjhi stated that MSMEs are also collaborating in tool rooms and technology, with such industries functioning in Mumbai and Chhatrapati Sambhajinagar.

“Thus far, 22,440 unemployed individuals have received training. The department aims to train 10 crore unemployed people by 2029 to enhance employability,” he concluded.