Contribution Of MSEs To Employment In India

MSEs are being the second largest employment-generating sector after the Agricultural sector. According to the Third All India Census of MSEs (2001-02) the total employment of MSEs was 249.33 lakh numbers. The share of MSEs in the total employment among other organized sector is around 34.93%.

Employment growth rate in MSEs is 4.4% with reference to 2002-07. Whereas, in organized sector the growth rate is only 1.2% with reference to 2000-04.

The Parliament of India stated that during the 11th five-year plan the Micro and small enterprises (MSE) are expected to provide employment to additional 69 lakh persons.
According to the “Minister of State (Independent Charge) for Micro, Small and Medium Enterprises” the 11th five-year plan envisages raising production (at current price) and employment in the MSE sector from 6.8 lakh crore and 322.28 lakh persons in 2007-08 to Rs 13.98 lakh crore and 391.73 lakh persons in 2011-12.

Prime Minister’s Employment Generation Programme and many other schemes are being implemented by the Government to increase the number of MSEs and their productivity there by generating more employment in India.

According to the “Minister of State (Independent Charge) for Micro, Small and Medium Enterprises” Projections of Employment in XI Plan:

Year Employment (In Lakh)
2007-08 322.28
2008-09 338.39
2009-10 355.31
2010-11 373.08
2011-12 391.73

Suggested Reading:
Financial Source To MSEs In India
Contribution Of MSEs In GDP Of India
Contribution of MSEs to the Exports in India
SMBs in India Becoming More Concerned About IT Security
Development measures for MSEs in India
MSMEs-Being Major Contributors, Struggling to Survive and Sustain

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