The Micro, Small and Medium Enterprises (MSMEs) sector of one of the major element that is making the Indian economy raise in the last few years. This sector is contributing almost 30 percent of the country’s GDP which is a significant helping hand for the Indian Economy. The contribution of MSMEs in the Indian economy can be seen in the job sector too where it has given employment to more than 117 million people in the last few years. The MSMEs are acknowledged as the backbones of the Indian economy and it is expected that by the year 2020, India will be the largest job ready market and generate huge employment opportunities.
At the present date, almost 65 million MSMEs operating actively across the country which is a great achievement for the nation. The number of MSMEs has increased significantly in the past few years and in future MSMEs are expected to solve the financial issues of the nation. Being one of the largest job creators, MSMEs have already contributed a lot in solving the unemployment problem of the country.
The best about entering the MSME industry is the less amount of investment. This is the reason which has made the youths with more innovative ideas and less money to invest opt for MSMEs rather than taking a less paid day job. More and more MSMEs functioning in the country is the factor helping in reducing the unemployment and underemployment problems to a large extent.
Why MSMEs are the Emerging Stars of the Indian Economy
Giving Employment to Millions
Millions of unemployed youths of India are able to earn a livelihood because of the existence of MSMEs. It creates huge opportunities for educated youths. In India, almost 1.2 million graduates in different fields are produced every year. As the production of educated youths is too high, the government alone is not able to provide jobs for all of them. The MSMEs are the boons to the government that it has reduced this issue to a large extent.
Low Capital to Start
MSMEs do not require a very large amount to start the business. The vital force to start MSMEs is a unique and innovative idea. An MSME does not require many resources such as manpower, types of equipment etc. Even the management of the MSME business can be done by the entrepreneurs himself/herself and does not require any outsourcing for managing the business. MSME businesses can be managed single-handedly.
The Government Support
The government support provided to MSMEs in the last few years in the stepping stone for those emerging businesses. Because of the encouragement of the government, the MSMEs are flourishing at a faster pace. Government is providing various kinds of MSME loans and SME loans to support those businesses financially. The government has launched an exclusive project under which MSMEs can get a business loan within 59 minutes. Not only the loans but the Government has also come up with projects that train the youths to learn various vocational skills.
Indian MSMEs: A Long Way to Go
The present stage of the Indian MSMEs is just the beginning. The proper implementation of plans and measures taken to improve the MSMEs is certain to take the Indian economy to the next level. The MSME sector of India is expected to go through a paradigm shift within a few years.