This blog throws light on the role of MSMEs in the Indian economy, along with its elements and reliefs and exemptions provided to MSMEs. MSME stands for Micro, small and medium-sized enterprises or can be called as small businesses. The Government of India has introduced MSME in association with Micro, Small and Medium Enterprises Development (MSMED) Act of 2006. These enterprises are primarily engaged in producing, manufacturing, processing, or preserving goods and commodities.
MSME’s support in India– The spread of COVID-19 in India and the consequent lockdown has resulted in stressed national economic growth and has put financial pressure on businesses. A proposal was set forth to redefine MSMEs by the Micro, Small and Medium Enterprises Development (Amendment) Bill, 2018, to notify them as manufacturing or service-providing enterprises, based on their annual turnover.
Since its formation, the role of MSMEs has proved to be highly dynamic in the Indian economic sector. MSMEs produce and manufacture a range of products for both domestic as well as for international markets. They have promoted the development of the khadi industry, village, and other small industries. They have collaborated to work with the concerned ministries, state governments, and stakeholders towards rural areas’ bringing progress to the nation.
There is an active role of MSMEs in providing employment opportunities in rural areas. They have helped in industrializing these areas with a low capital cost compared to the large industries. The MSME sector has also enormously contributed to its socio-economic development. MSMEs also help immensely in the country’s progress in different areas like the requirement of low investment, flexibility in operations, mobility through locations, a flat rate of imports, and a high contribution to domestic production.
The significance of the MSMEs sector lies in the fact that it is the second-largest employment provider by employing 120 million people, after agriculture in India. In India, there are about 56 million such enterprises in various industries, using close to 124 million people. The MSME sector accounts for 8% of India’s GDP and 45% of merchandise exports. Due to this, the MSME sector is called the growth engine of the nation.
MSMEs are an essential sector for the Indian Economy and have contributed immensely to their socio-economic growth & development. It not only generates employment opportunities for many but also works hand-in-hand towards the development of the nation’s backward and rural areas. Hence, we must say that role of MSMEs is not limited but is beyond the clouds.
Under the Aatmnirbhar Bharat scheme, few reliefs and exemptions are provided to MSMEs:
The MSME ministry has notified a simple one-page registration form called ‘Udyog Aadhaar Memorandum to encourage the small business enterprises.’ The entrepreneurs in the MSME sector can fill in the form online and instantly get a unique Udyog Aadhaar Number. The information sought includes personal Aadhar number, industry name, and address of the business, bank account details, and other general information. Applicants further do not need any supporting documents.
As an Aatmnirbhar Sena, we are also assisting the Government schemes and plans to execute the plan associated with the setting up of MSMEs and to provide employment to the number of budding entrepreneurs and to contribute to the Indian Economy.
The Indian MSME sector provides silent support and strength to the National Economy and acts as a defense against global economic adversities. Hence, we can say that India is progressing towards a robust global economy through a silent revolution powered by MSMEs.