Micro Small and Medium Enterprises contribute significantly to total industrial activity in our country and play a vital role in boosting employment generation. Currently, there exist over seven crore MSMEs that create around twelve crore jobs in the country across various types of enterprises. This sector offers wide range of opportunities for self-employment as well as jobs after the agricultural sector. In addition, the labour – capital ratio tends to be much higher for MSMEs.

Agenda for Action:

MSME sector is critical for the growth of the economy. This is because the sector tends to have a multiplier effect on other sectors in the economy. As envisaged in the National Manufacturing Policy (NMP), the manufacturing sector has the potential to provide employment to 100 million people by 2022. However, in order to do so, it is imperative to bring about certain changes. Some of the suggestions through which employment can be boosted are:

1. Encourage growth in labour – intensive industries
2. Improve quality of training imparted in schools, colleges and universities by setting up innovative labs

• Enhance labour productivity by adopting best practices

1. Ensure timely credit flow
2. Facilitate good market access

Increasing Market Access:

• In order to increase market access for MSMEs and uplift the marginalized sections of the society, Public Procurement Policy (PPP) of Government of India is providing a drive towards entrepreneurship by way of giving preferential market access to MSEs
• National Scheduled Caste/Scheduled Tribe Hub (NSSH) was launched by the Prime Minister in October 2016. The Hub has a clear focus on promotion of entrepreneurship among. Scheduled Caste and Scheduled Tribe Communities.
• President of India launched “MSME Sampark” portal – a digital platform where the recruiters would have access to the increasing talent pool of trained manpower, facilitating their placement.

Timely Access to Credit:

• MUDRA has been a flagship programme of the present Government, facilitating unprecedented credit flow into the micro enterprise eco-system.
• Another major initiative of the Government in the MSME sector has been the enhancement of the Credit Guarantee Fund (CGTMSE) from Rs. 2500 crore to more than Rs. 8000 crore.
• MSME Ministry has launched a new scheme – Mission Solar Charkha. Under this initiative, it is envisaged to set up 50 clusters in the first phase giving employment opportunities to nearly one lakh people in the rural areas mostly to women.

These schemes have a huge social context as these are majorly aimed to benefit women and the marginalized sections of the society such as Scheduled Caste and Scheduled Tribe communities. 

Conclusion:

As per the last NSSO Survey, there are around 6.34 crore MSMEs in the country. They are steadily migrating to the formal economic sytem – registering in the GST network. An overwhelmingly large percentage of entities registered in the GSTN are MSMEs. They deserve all support for their growth.