MSMEs Vital to Indian Economy: Significant Contributions in GVA, Manufacturing

The Micro, Small and Medium Enterprises (MSMEs) sector plays an important role in the growth of the Indian economy. The share of MSME Gross Value Added (GVA) in All India Gross Domestic Product (GDP) is around 30%. The share of MSME manufacturing output in All India manufacturing output is around 36%. The share of MSME related product exports in All India exports is around 45%. As on 05.02.2024, the number of persons employed in the MSMEs which are registered on the Udyam Registration Portal and Udyam Assist Platform, are 16,86,64,562 (from 01.07.2020 up to 05.02.2024).

The import data of Man-Made Fibres from China and Bangladesh, is given at Annexure-I. Further, No cases of import of polyester clothes from China and Bangladesh misdeclared as cotton have been reported by Customs field formations and Directorate of Revenue Intelligence during FY 2020-21 up to FY 2023-24 (up to 31.01.2024).

The Government has approved the Production Linked Incentive (PLI) Scheme for Textiles, with an approved outlay of Rs. 10,683 crore over a five year period, to promote production of Man-Made Fibres (MMF) apparel, MMF fabrics and products of Technical Textiles in the country to enable textile sector to achieve size and scale and to become competitive.

The challenges faced by the MSME sector inter alia include access to affordable credit, technology, informality, lack of infrastructure, shortage of skilled manpower and access to market. To mitigate these challenges, the Ministry of Micro, Small and Medium Enterprises implements various schemes for the benefit of MSMEs across the country including in the State of Odisha. The schemes/programmes inter alia include Prime Minister’s Employment Generation Programme (PMEGP), Credit Guarantee Scheme for Micro and Small Enterprises, Micro and Small Enterprises-Cluster Development Programme (MSE-CDP), MSME Champions scheme, International Cooperation Scheme, Procurement and Marketing Support Scheme (PMS) and National SC/ST Hub (NSSH).

ANNEXURE-I

The import data of Man-Made Fibres from China and Bangladesh are given below.

                                                                                    (Values in US$ Millions)

Source: Directorate General of Commercial Intelligence and Statistics (DGCIS).