MSME share in GDP may touch 10%

Keeping the bittersweet part of Budget aside, MSMEs in India are all set to contribute phenomenally to the country’s gross domestic product (GDP). Finance secretary Ashok Chawla while inaugurating the All India Management Association (AIMA) said, the current contribution of MSME sector to GDP is 8 percent and now the Indian growth story has to gear up and move fast forward to achieve a higher growth level of about 10 percent. From 3-4 percent initially to 6 percent and now 8-9 percent, MSMEs contribution to the GDP has been significant.

Chawla however also emphasized on the fact that country looks forward to government’s help to eliminate the poverty level. This includes: technological up gradation of technology, finance required and so that projects are completed in due time. The minister also stressed on the fact that targeted delivery of credit should penetrate the micro sector, for this the commercial banks should ensure credit availability.

Further he also emphasized on the fact that the government and state’s contribution can only be up to a limit, the sector on its own has to map out its growth plan. . “The world now recognizes that the MSME has reached a level of maturity and role of innovation, enterprise and initiative comes in” he further said. MSME secretary Dinesh Rai informed that at present the sector employs 60 million people and adds 40 percent to the exports. And India today is a country of young people, local markets and local expertise, with a target of nurturing 500 skilled people by the year 2022. However, the private sector has to play a major role in the development of MSMEs.

MSME today consist of more than 90 percent of the overall business enterprises in India – including both the organized and unorganized sectors. The development of this sector therefore is of supreme importance to the overall development of the Indian economy.