Number of MSMEs in India FY 2016, by type
MSMEs are vital for the economy in terms of their contribution to the market and generation of employment in the country. The manufacturing output of MSMEs was close to 30 trillion Indian rupees during financial year 2015. The output from the enterprises also accounted for an almost 31 percent contribution to the GDP in the same financial year.
A glance at the enterprises
Between the two sectors, the dominant hand is laid by the service sector, which had an employment figure of approximately 50 million, whereas the manufacturing sector could only pull off half that number. Most of the employment comes from unregistered enterprises, with hesitations and avoidance of the difficult registration process quite evident. The saying “small things make the largest impact” holds true for MSMEs in India where small enterprises had a fixed asset value of over two trillion Indian rupees. With more infrastructural input and a simplified process of registration and receiving benefits from the government, MSMEs in the country are destined to go a long way.