Day 33 – Q 2. Do you think the micro, small and medium industries hold the key to India’s industrial growth? Examine.
2. Do you think the micro, small and medium industries hold the key to India’s industrial growth? Examine.
क्या आपको लगता है कि सूक्ष्म, लघु और मध्यम उद्योग भारत के औद्योगिक विकास की कुंजी है? जांच करें।
Introduction:
Micro, Small and Medium Enterprises (MSME) have been classified in accordance with the provisions of Micro, Small & Medium Enterprises Development (MSMED) Act, 2006 in two Classes: Manufacturing Enterprises defined in terms of investment in Plant & Machinery and Service Enterprises defined in terms of investment in equipment.
Body:
MSMEs hold the key to India’s industrial growth:
- Share in manufacturing output- Around 45% of the manufacturing output is contributed by MSMEs, thus showing their immense potential in industrial growth.
- Employment generation- Unlike large industries, MSMEs provide employment to skilled as well as semi-skilled workers on formal and informal basis.
- Regional diversity- Owing to their small scale, these are ubiquitously present throughout the length and breadth of the country, thus reaping the full potential of our demography.
- Encourage innovation- Small investment encourages new-age entrepreneurs to create globally competitive business from India.
- Share in exports- About 40% of India’s exports come from MSME sector. A boost tot the sector can thus boost overall exports.
- Utilization of local inputs- Under Make in India, indigenization is boosted and raw material and indigenous technologies are being utilized in manufacturing.
Despite the enormous potential, there are several factors that hinder the growth of this sector, like access to finances, access to markets, technology up gradation, ease of doing business, under-utilization of capacity and unorganized nature of employment.
Conclusion:
Recent initiatives of government like 59 minute loan portal, SFURTI and ASPIRE are aimed at removing the hindrances in the growth of MSMEs. More still needs to be done to enhance the capabilities of the sector and make things easier to actually aid in India’s industrial growth.
Best answer: Shri
