Growth of MSEs in India

The growth of MSEs is significant in India. The MSEs are continuously increasing in India but in a slow rate. According to the results of the Third All India Census of MSEs with reference year 1995-96, the registered MSEs are 2017499 and for the year 2001-02, the registered MSEs are 22,62,401. This shows the 40% growth rate of the MSEs in India. In addition, 55% of MSEs are upgrading technologically. Utter Pradesh is the state having more number (402606) of MSEs and Sikkim and Lakshadweep are the states having less number (349 & 76 respectively) of MSEs with the reference year 2001-02.

Earlier the MSEs mainly focused simply on the consumer goods but these days they are producing highly sophisticated goods ranging from food products to big machinery parts. More than 8000 products have been produced by the MSEs and will be producing more in near future.

SME’s contribution to national GDP is 8% and is projected to go up by a minimum of 5% and reach 22% share of India’s GDP by 2012.

Around 95% of the MSEs are industrial units and its present contribution to Industrial production is 39% and is expected to go up to 45%.

SMEs’ share to national exports currently is 33%, which will increase to over 40% in next five years.

MSEs providing employment to 322.28 lakh persons in 2007-08 and is projected to provide employment to 391.73 lakh persons in 2011-12.

Suggested Reading:
Micro – Franchising in India
Formation Of SME Clusters
How To Find If A Firm Is Micro Enterprise In India
Development measures for MSEs in India
Significance Of Micro Businesses In India
Government Owned Business in India

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