Share of MSMEs in manufacturing output stands at 35.4%

The Economic Survey tabled by Union Minister of Finance and Corporate Affairs, Ms. Nirmala Sitharaman, underscores the significance of the MSME sector, which contributes 35.4% to all-India manufacturing output. The survey reveals that Gross Value Added (GVA) per worker increased from US$ 1,652.56- US$ 1,695.15 (Rs. 1,38,207 to Rs. 1,41,769), while Gross Value of Output (GVO) per establishment rose from US$ 4,762.58 – US$ 5,540.81 (Rs. 3,98,304 to Rs. 4,63,389), indicating enhanced productivity and labour efficiency. The success of the Udyam Registration portal, with 4.69 crore registrations as of July 5th,2024, has played a crucial role in formalizing MSMEs through a simple, online, and free registration process based on self-declaration. Additionally, significant growth in guarantees for MSMEs from FY20 to FY24 is noted, with the Union Budget 2023-24 allocating US$ 1.08 billion (Rs. 9,000 crore) to the Credit Guarantee Fund Trust to enable an additional US$ 23.91 billion (Rs. 2 lakh crore) in credit at reduced costs.

The Survey also highlights India’s vision of becoming 'Aatmanirbhar' through the Production Linked Incentive (PLI) Schemes for 14 key sectors, with an outlay of US$ 23.55 billion (Rs. 1.97 lakh crore) aimed at enhancing manufacturing capabilities and exports. Investments exceeding US$ 15.30 billion (Rs. 1.28 lakh crore) reported until May 2024 have led to production/sales of US$ 129.12 billion (Rs. 10.8 lakh crore) and employment generation (direct and indirect) of over 8.5 lakh. Exports have been boosted by US$ 47.82 billion (Rs. 4 lakh crore), particularly in electronics manufacturing, pharmaceuticals, food processing, and telecom & networking products. The Survey details initiatives to promote the One District One Product (ODOP) scheme, including establishing “Unity Malls” in state capitals and major tourism or financial centres to promote and sell ODOP products. The “PM-Ekta Malls” initiative aims to connect ODOP artisans with consumers, creating vibrant marketplaces for domestic and foreign markets. Additionally, 'ODOP Sampark' workshops in 15 states have facilitated collaboration between the Centre and local sellers, reviving indigenous industries. The ODOP initiative was also showcased at G20 events during India’s G20 Presidency, providing global visibility to artisans, sellers, and weavers.

Disclaimer: This information has been collected through secondary research and IBEF is not responsible for any errors in the same.