MSMEs To Create 2 Lakh New Jobs BY 2050: Report Reveals

A report released on Thursday foresees an addition of  2 lakh new jobs in MSME sector by 2050. The Indian Micro Small and Medium Enterprises employs about 1.2 crore people.

As per the analysis by LB Services, a global provider of technology and digital talent solutions, the manufacturing and services industries in both urban and rural areas of India will house the new opportunities.

CEO of NLB Services, Sachin Alug said, “Home to 633.9 lakh enterprises, India has the strongest growing cohort of micro, small and medium enterprises, generating mass-scale employment across India, especially in tier 2 and 3 regions.”

Today, small businesses which comprise 96 per cent of industrial units are the second largest employment generator in the country.

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Overall the MSME ecosystem contributes to over 33 per cent of the GDP, driving 62 per cent of the employment on the domestic front.

Adding to his argument Sachin Alug said, “However, the average contribution of MSMEs in employment generation across other emerging economies stands at 77 per cent, indicating untapped potential that can be explored in India.”‘

Surge in digitalization and post-pandemic shift in workforce led to increased demand for labours.  Sectors like construction, manufacturing, transportation, and supply-chain, etc. will offer 2 Lakh New Jobs in MSME sector.

Report also reveals about the states that will offer opportunities. States like Andhra Pradesh, Gujarat, Karnataka, Maharashtra, Tamil Nadu, and Telangana to house the majority of these jobs.

Women-led enterprises stand at 20.44 per cent of micro-businesses, 5.26 per cent of small businesses, and 2.77 per cent of medium businesses.

Compared to male-owned MSMEs, women-led MSMEs have registered better growth in income, said the report.