World Micro-, Small- and Medium-sized Enterprises (MSMEs) Day was commemorated on Jun 27 with the theme - ‘MSMEs and the SDGs’.
- MSMEs are important in the implementation of SDG 8 (decent work and economic growth) and SDG 9 (industry, innovation and infrastructure).
Significance of MSMEs
- Globally, MSMEs account for 90% of businesses, 60 to 70% of employment, and 50% of GDP.
- In India, share of MSME Gross Value Added (GVA) in all India GDP stands at 29.1% (2021-22) with its share in export amounting to 43.59% (2022-23).
Challenges faced by MSMEs in India
- Access to finance: Current supply of credit via commercial banks fulfills only 16% of credit demand of MSMEs, inadequate access to working capital, etc.
- Access to Market: Limited exposure to global exports market, constraints related to international quality standards, etc.
- Business environment: Numerous regulatory compliances, delays in customs clearance, policy uncertainty, ‘Inverted Duty Structure’ which hinders access to raw materials, etc.
Initiatives to support MSMEs in India
- For improving access to finances: Pradhan Mantri Mudra Yojana, Priority Sector Lending for MSMES, etc.
- For improving performance: Raising and Accelerating MSME performance (RAMP) Programme, Aatmanirbhar Skilled Employee Employer Mapping (ASEEM) Portal, etc.
