The MSMEs (Micro, Small and Medium Enterprises) are backbone to all the countries in the world. In India, MSME sector is a great contributor of manufacturing output, exports and employment. The sector accounts for about 40% on total exports and 45% of industrial output. The sector employs about 59 million persons in over 26 million units present across the country. Over 6000 products ranging from traditional to high tech items are being manufactured by Indian MSMEs.
The Office of the DC (Development Commissioner) provides estimates in respect of various performance parameters relating to the sector. From the year 1992, the MSME sector growth is increasing year on year and the contribution to the country’s economy is also increasing. As of 1992 there was 73.51 lakh MSMEs in India. At that time the fixed investment was 1,09,623 crores. The production accounted for 84,413 crores and the exports were 17,784 crores. The MSME sector provided employment to 174.84 lakh persons in 1992.
When coming to 2008-09, there were 285.16 lakh MSMEs in India and this number has increased to 298.08 lakh in 2009-10. And the fixed investment of the MSME sector was 6,21,753 crores, production was 8,80,805 crore in 2008-09 and the numbers are increased to 6,93,835 crores and 9,82,919 crores in 2009-10 respectively. The total employment from the MSME sector in the country as per the fourth census of MSEs with reference year 2006-07 was 594.61 lakh members. As per the estimates compiled for the year 2009-10, the employment was 695.38 lakh persons in the sector. (According to the Ministry of MSME sector Annual Report 2011).
The MSMEs sector has maintained a higher rate of growth, which is equivalent to overall industrial sector, which is clear from the comparative growth rates of production for both the sectors during last five years.