According to recent data, India’s registered Micro, Small, and Medium Enterprises (MSMEs) have collectively crossed a significant milestone in employment, surpassing 20.2 crore jobs.
This figure marks a remarkable 66% increase from the 12.1 crore jobs reported just a year ago.
Among the workforce, 4.54 crore are women, underscoring a notable contribution to gender inclusivity in the sector.
Meanwhile, the majority of these jobs, accounting for the bulk of employment, are provided by micro-enterprises, which constitute 4.6 crore of the 4.68 crore registered MSMEs.
Since the introduction of the Udyam registration portal by the government in July 2020, the number of workers employed in the MSME sector has skyrocketed, increasing by 5.3 times.
This growth underscores the sector’s expanding role in India’s economy and its ability to generate substantial employment opportunities.
The government’s initiatives have simplified the registration process for MSMEs and clarified definitions for micro, small, and medium enterprises based on investment and turnover criteria.
These definitions are however crucial as they enable enterprises to avail themselves of various incentives aimed at fostering employment and enhancing income levels.
Micro Enterprises: Defined by investments not exceeding one crore rupees in plant and machinery, with turnovers not exceeding five crore rupees.
Small Enterprises: Characterized by investments not exceeding ten crore rupees in plant and machinery, with turnovers not exceeding fifty crore rupees.
Medium Enterprises: Defined by investments not exceeding fifty crore rupees in plant and machinery, with turnovers not exceeding two hundred and fifty crore rupees.
Economic Impact:
The Finance Ministry’s monthly economic report earlier this year highlighted the pivotal role of MSMEs in India’s economic landscape, emphasizing their significant contribution to employment generation and economic growth.
The surge in MSME employment numbers signifies a robust growth trajectory for India’s small business sector, propelled by supportive government policies and streamlined registration procedures.
As MSMEs continue to thrive, their role in sustaining economic momentum and fostering inclusive growth remains pivotal.
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