How Will MSMEs Contribute to the ‘Viksit Bharat’ Vision?
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Synopsis
Discover how MSMEs are pivotal to India's 2047 vision of a developed nation. NK Singh outlines the potential for growth in GDP and the critical role of women's empowerment in this transformative journey. Learn about initiatives like PMMY that are enabling entrepreneurs across the country.
Key Takeaways
- MSMEs are essential for achieving a developed India by 2047.
- Women’s empowerment is a key factor in MSME growth.
- PMMY has provided significant financial support to entrepreneurs.
- Current MSME GDP contribution is 30%, aiming for 40%.
- Collaboration with various financial institutions ensures access to credit.
New Delhi, April 28 (NationPress) The micro, small and medium enterprises (MSMEs) are set to play a vital role in India's ambition of achieving a ‘Viksit Bharat’ by 2047, as stated by NK Singh, former chairperson of the Finance Commission, during a recent event.
At NDTV's 'Emerging Business - Delhi Chapter Conclave', Singh emphasized that while MSMEs currently contribute 30 percent to the nation's GDP, they must elevate this to 40 percent to fulfill Prime Minister Narendra Modi's vision of a developed India.
Singh, who led the 15th Finance Commission from 2017 to 2023, highlighted the importance of women's empowerment in this sector.
He remarked, "The contribution of the MSME sector to India’s development is crucial not just for productivity enhancements, but also for increasing the GDP share, particularly with a growing number of women actively participating in this space."
In response to a World Bank report indicating that women-led businesses make up 23 percent of all MSMEs but face a 31 percent financing gap, Singh noted the need for addressing this significant issue.
The Pradhan Mantri Mudra Yojana (PMMY) has opened doors for countless individuals to express their entrepreneurial potential. This flagship initiative by PM Modi aims to provide funding to unfunded micro enterprises and small businesses.
Since its inception in April 2015, PMMY has sanctioned over 52 crore loans amounting to Rs 32.61 lakh crore, sparking an entrepreneurial transformation across the nation. Business development is now extending beyond major cities, reaching small towns and villages where first-time entrepreneurs are seizing opportunities.
This scheme guarantees collateral-free institutional credit up to Rs 20 lakh from Member Lending Institutions (MLIs), such as Scheduled Commercial Banks (SCBs), Regional Rural Banks (RRBs), Non-Banking Financial Companies (NBFCs), and Micro Finance Institutions (MFIs).
Point of View
It is imperative to recognize the crucial role that MSMEs play in the economic landscape of India. With the government fostering entrepreneurship through initiatives like PMMY, the focus on women's empowerment and financial inclusivity is not just beneficial but necessary for a balanced and developed economy. Our commitment remains to support these initiatives and provide a platform for voices that drive progress.
NationPress
18/06/2025
Frequently Asked Questions
What are MSMEs?
MSMEs refer to micro, small, and medium enterprises that are critical to the economic development of India.
How do MSMEs contribute to GDP?
Currently, MSMEs contribute about 30% to India's GDP, and efforts are underway to increase this to 40% by 2047.
What is the Pradhan Mantri Mudra Yojana?
PMMY is a government scheme that provides financial support to unfunded micro and small businesses to promote entrepreneurship.
What is the financing gap for women-led MSMEs?
According to a World Bank report, women-led enterprises represent 23% of MSMEs but account for 31% of the financing gap.
How has PMMY impacted entrepreneurship in India?
Since its launch in 2015, PMMY has sanctioned over 52 crore loans, significantly boosting entrepreneurial activities across the nation.
