News Excerpt:
The United Nations General Assembly has designated June 27th as "Micro, Small, and Medium sized Enterprises Day" to highlight the significant contributions of MSMEs to achieving the United Nations Sustainable Development Goals (SDGs).
More About News
- This day was declared by the UN to highlight the vital role of Micro-Small and Medium-sized Enterprises (MSMEs) in the global economy.
- The UN reports that MSMEs account for 90% of businesses worldwide, 70% of employment, and 50% of GDP.
Theme for 2024:
- The theme for MSME Day 2024 is “Leveraging Power and Resilience of Micro, Small and Medium sized Enterprises (MSMEs) to Accelerate Sustainable Development and Eradicate Poverty in Times of Multiple Crises.”
Role of MSMEs:
- MSMEs are essential to many nations, particularly developing countries, where they significantly contribute to employment, poverty reduction, and economic growth.
- These enterprises operate in diverse sectors such as manufacturing, services, agriculture, and trade, driving innovation, entrepreneurship, and local development.
MSME in India
- According to the MSME Ministry's FY23 annual report, India has over 63 million MSMEs, second only to China's 140 million micro and small enterprises.
- Indian MSMEs contribute 30% to the GDP, 45% to manufacturing production, and is the second-largest employer after agriculture.
- The government’s Udyam registration portal shows over 46 million MSMEs registered, providing over 200 million jobs.
National Small Industry Day
- In addition to MSME Day, India celebrates National Small Industry Day on August 30 each year.
- The MSME sector in India plays a crucial role in promoting inclusive growth and balanced regional development.
- Given their substantial contribution, they are appropriately referred to as the 'backbone of the country.'
- MSMEs also complement large industries as ancillary units and are vital to the entire secondary and tertiary sector ecosystem.
Classification of MSME in India:
|
CLASSIFICATION |
MICRO |
SMALL |
MEDIUM |
|
Manufacturing Enterprises and Enterprises rendering Services |
Investment in Plant and Machinery or Equipment: Not more than Rs.1 crore and Annual Turnover ; not more than Rs. 5 crore |
Investment in Plant and Machinery or Equipment: Not more than Rs.10 crore and Annual Turnover ; not more than Rs. 50 crore |
Investment in Plant and Machinery or Equipment: Not more than Rs.50 crore and Annual Turnover ; not more than Rs. 250 crore |
