Anushruti Singh
The Economic Survey tabled by Union Minister of Finance and Corporate Affairs, Nirmala Sitharaman, in Parliament today underscores the significant role of Micro, Small, and Medium Enterprises (MSMEs) in India’s economy, with their share in manufacturing output standing at 35.4 percent.
The survey highlights improvements in productivity and labor efficiency, with Gross Value Added (GVA) per worker rising from ₹1,38,207 to ₹1,41,769 and Gross Value of Output (GVO) per establishment increasing from ₹3,98,304 to ₹4,63,389. The Udyam Registration portal has been a key factor in formalising MSMEs, receiving 4.69 crore registrations as of July 5, 2024, offering a simple, online, and free registration process based on self-declaration.
Between FY20 and FY24, there has been significant growth in the amount and number of guarantees for MSMEs, with the Union Budget 2023-24 allocating ₹9,000 crore to the Credit Guarantee Fund Trust. This aims to facilitate an additional ₹2 lakh crore in credit with reduced costs.
In alignment with India’s vision of becoming ‘Aatmanirbhar,’ the Production Linked Incentive (PLI) Schemes for 14 key sectors were introduced with an outlay of ₹1.97 lakh crore to enhance manufacturing capabilities and exports. As of May 2024, over ₹1.28 lakh crore of investment was reported under these schemes, leading to production/sales worth ₹10.8 lakh crore and generating over 8.5 lakh jobs, both direct and indirect. The schemes have significantly boosted exports by ₹4 lakh crore, with notable contributions from large-scale electronics manufacturing, pharmaceuticals, food processing, and telecom & networking products.
To further support the One District One Product (ODOP) initiative, the Union Budget for FY24 announced plans to encourage states to establish “Unity Malls” in their capitals, prominent tourism centers, or financial capitals. These malls aim to promote and sell ODOPs, linking artisans with consumers through vibrant marketplaces targeting both domestic and international markets. The survey also mentions “PM-Ekta Malls,” which connect ODOP artisans with consumers, and the ODOP Sampark workshops conducted in 15 states to foster collaboration between the Centre and local sellers and revive indigenous industries.
The ODOP initiative showcased India’s unique products to the world during the G20 events organised across the country during India’s G20 Presidency, providing global visibility to artisans, sellers, and weavers.
The Economic Survey’s findings highlight the resilience and growth potential of the MSME sector, driven by strategic government initiatives and investments aimed at bolstering India’s manufacturing and export capabilities.
