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Feb 15 / Dale Harris

MSME Sector was the Second-Largest Contributor to India’s GDP

It was found that the MSME sector was the second-largest contributor to India’s GDP. Indian government planned to rise Rs. 1,000 crore for the development of SMEs in 2009. The sector provided about 80%-90% of employment to Indian population in 2009.

MSMEs were found to have a share of 45% and 35% in production and exports of the nation respectively. A discussion named ‘IT Solutions for MSMEs-Lip Service or Real Solutions’ was conducted which provided suggestions for serving the MSME sector. It revealed the need for understanding the market and providing indigenous and simple solutions which help in building confidence among MSMEs.

It was found that a contribution of 40%-50% of the economic activity was given by MSME sector. However, there were some manipulations and undeserved issues against the sector. There were some misplaced regulatory and business compulsions in the sector. These had to be avoided for enhancing the growth of MSMEs in Indian market.

According to a study by Associated Chambers of Commerce and Industry of India (ASSOCHAM), it was estimated that small and medium enterprises (SMEs) contribute 22% to India’s GDP by 2012. The contribution according to the study was 17% in 2009. The contribution to exports which was 40% then, was estimated to increase to 44% by 2012.

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