The Role MSMEs Play for the Indian Economy
Ever since their introduction, MSMEs have proved themselves to be a highly productive segment of the Indian economy. These enterprises produce a wide range of products and services for both domestic and international markets. Today, many economists hold MSMEs responsible for the development of India’s coir, village and khadi industries.
Over the years, these enterprises have worked hand-in-hand with state governments and concerned ministries for the welfare of India’s rural population. They are responsible for the industrialization as well as the socio-economic development of these areas… and they did so at a relatively lower capital cost than larger industries.
Moreover, MSMEs have also been instrumental in the development of our country in several other aspects as well. For instance, they are responsible for boosting domestic production, lowering rates of imports, achieving flexibility in operations, and offering employment opportunities to the rural population.
How important are MSMEs for India’s Perpetually Growing Economy
MSMEs are fundamental for India to promote equitable development and accomplish consistent economic growth. Many foreign developed nations hail MSMEs for their thriving economy. These enterprises can and are doing the same for India as well.
Today, MSMEs employ around 120 million people across the country, thus becoming the second-largest generator of employment in the country after agriculture. MSMEs are expected to increase their contribution to the country’s GDP by up to 50% by 2025. This alongside MSMEs’ requirement for low investment, flexible operations, and the ability to rapidly develop native tech is taking India’s prosperity to a new height.
MSMEs very well might be the ace in the hole India needs to eventually achieve its goal of becoming a $5 trillion economy.