How can SMSEs create 60 lakh jobs for the next decade?
Economic Survey, 2019 predicts that India’s micro small and medium enterprises (MSME) will play a key role in innovation, growth and job…
Economic Survey, 2019 predicts that India’s micro small and medium enterprises (MSME) will play a key role in innovation, growth and job creation, which are millions in numbers, bit never grow beyond their small size. They have the potential to create millions of jobs, which can increase private consumption, which can increase the economic growth.
Firms with less than 100 workers, and more than 10 years old, account for more than half of all organised firms in the manufacturing sector. But their contribution to employment is only 14 per cent and to productivity is a mere 8 per cent.
Chief Economic Advisor says, “MSMEs that grow not only create greater profits for their promoters but also contribute to job creation and productivity in the economy. Our policies must, therefore, focus on enabling MSMEs to grow by unshackling them.”
If government means business, then it will bring in labour reforms, banking reforms, better implementation of contracts, and right incentives.