Contribution Of MSMEs In GDP

Question by: Shantanu Thakur and others.


  1. Whether Micro, Small and Medium Enterprises (MSMEs) sector is the backbone of the Indian economy and generates second highest number of employments after agriculture and if so, the details thereof;
  2. whether MSMEs sector contributes 8-10 percent of the GDP, 40 percent of manufacturing output and 45 percent of exports from the country and if so, the details thereof; and
  3. the reasons for unfair treatment with MSMEs sector when it comes to provide facilities and stimulus to the said sector?

Answer by:Minister of Micro, Small and Medium Enterprises (Nitin Gadkari)

  • As per 73rd round of National Sample Survey (NSS) (July 2015- June 2016) conducted by Ministry of Statistics & Programme Implementation (MoSPI), the estimated employed persons in MSME Sector are about 11.10 crore.
  • As per the information received from Central Statistics Office, MoSPI, MSME sector contributed 30.3% in All India GDP and 37.3% of manufacturing output in All India manufacturing output during 2018-19.
  • As per the information received from Directorate General of Commercial Intelligence & Statistics, share of MSME related products’ exports in All India exports during 2019-20 was 49.8%.
  • The Ministry of Micro, Small and Medium Enterprises (MSMEs) implements various schemes to grow MSME sector and provide stimulus to MSMEs by various schemes and packages. These include Prime Minister’s Employment Generation Programme (PMEGP), Micro and Small Enterprises-Cluster Development Programme (MSE-CDP), Scheme for Promotion of MSMEs in North Eastern Region and Sikkim, Tool Rooms and Technology Centers, Mission Solar Charkha (MSC), Scheme of Fund for Regeneration of Traditional Industries (SFURTI), Procurement and Marketing Support Scheme, Entrepreneurship Skill Development Programme (ESDP), Credit Guarantee Scheme for Micro and Small Enterprises (MSEs) and Credit Linked Capital Subsidy and Technology Upgradation Scheme (CLCS-TUS).
  • Recently, Post Covid-19, Government has taken a number of initiatives under Aatma Nirbhar Bharat Abhiyan to support the MSME Sector in the country especially in Covid-19 Pandemic. Some of them are:
    • Rs 20,000 crore Subordinate Debt for MSMEs.
    • Rs 3 lakh crores Collateral free Automatic Loans for business, including MSMEs.
    • Rs. 50,000 crore equity infusion through MSME Fund of Funds.
    • New revised criteria for classification of MSMEs.
    • New Registration of MSMEs through ‘Udyam Registration’ for Ease of Dong Business.
    • No global tenders for procurement up to Rs. 200 crores

An online Portal “Champions” has been launched on 1st June 2020 by the Prime Minister. This covers many aspects of e-governance including grievance redressal and hand holding of MSMEs. Through the portal, total 19,181 grievances have been redressed upto 14.09.2020. RBI has also announced several measures to Reduce Financial Stress of MSMEs.

Source : Civil Services Chronicle Online, October, 2020