Employment likely to grow in tandem with growth in MSME sector

The Dollar Business Bureau “With the Ministry of MSME implementing a number of schemes and programmes for the benefit of MSME Manufacturing sector across the country relating to credit, infrastructure development, and technology upgradation, employment in MSME manufacturing segment is growing in tandem with the growth in the number of enterprises,” said Minister of State, Micro, Small and Medium Enterprises, Giriraj Singh. The MSME Manufacturing sector has great potential to create more jobs in the country. As per the results of Fourth All India Census of Micro, Small & Medium Enterprises (MSME) and Economic Census 2005, the number of working enterprises in MSME sector was 361.76 lakhs in the year 2006-07 and was 467.56 lakhs in the year 2012-13 projected in Annual Report 2013-14,  showing Compound Annual Growth Rate (CAGR) of 4.37% for last 6 years. The employment in MSME sector was 805.24 lakhs in the year 2006-07 and was 1061.52 lakhs (projected) in the year 2012-13 showing Compound Annual Growth Rate (CAGR) of 4.71% for last 6 years. Hence, employment in MSME manufacturing segment is growing in tandem with the growth in the number of enterprises. Considering the fact that there is a steady annual growth rate of over 10% in the registration of new MSME units (mostly in manufacturing) employment is also likely to rise in the MSME manufacturing segment. With greater emphasis on better implementation of schemes like Credit Guarantee Scheme, Credit Linked Capital Subsidy Scheme, Performance and Credit Rating Scheme, Cluster Development Programme, National Manufacturing Competitiveness Programme and Prime Minister’s Employment Generation Programme all over  all over the country, the Government proposes to boost manufacturing activities with the objective of creating more jobs, the Minister concluded.  

This article was published on March 02, 2015.