New Delhi: In a significant development for India’s economic landscape, the Ministry of Micro, Small and Medium Enterprises (MSMEs) has reported a remarkable increase in the number of registered MSMEs over the past year.
The figure has skyrocketed from 1.65 crore to 5 crore, marking a substantial stride in the formalisation of this crucial sector.
Dr. Rajneesh, Additional Secretary and Development Commissioner at the Ministry of MSME, revealed these figures during the FICCI CMSME National Conference 2024.
He highlighted that this surge is the result of a concerted effort by the government, in collaboration with state authorities and industry associations, to bridge the formalisation gap in the MSME sector.
The importance of this development cannot be overstated. MSMEs are the backbone of the Indian economy, contributing approximately 30 per cent to the national GDP, 36 per cent to manufacturing, and 44 per cent to exports.
Moreover, they provide employment to an estimated 21 crore individuals, making them the second-largest employer after agriculture.
Alongside the registration drive, the government has made significant strides in addressing the credit needs of MSMEs.
The Credit Guarantee Trust for Micro and Small Enterprises (CGTMSE) has extended credit guarantees worth Rs 4 lakh crore in the last two years alone, a figure that surpasses the cumulative amount of Rs 2.6 lakh crore provided over the previous 22 years. The government aims to further increase this to Rs 5 lakh crore in the next two years.
Quality Council of India (QCI) Secretary General Chakravarthy T Kannan emphasised the need for enablers such as AI and innovation to ensure MSMEs are future-ready.
He also mentioned ongoing collaborations with ONDC (Open Network for Digital Commerce) to create a quality-assured platform for MSMEs.
As India progresses towards its vision of becoming a developed nation, the MSME sector’s growth and formalisation will play a pivotal role.
The government’s initiatives, coupled with industry support, are paving the way for a more robust, competitive, and formalised MSME sector, which is crucial for India’s journey towards becoming a Viksit Bharat (Developed India).
