Why in News?
Every year on June 27th, the world celebrates International Micro, Small, and Medium Enterprises (MSME) Day to emphasise the importance of MSMEs and how they play a critical part in being the backbone of the country’s economy.
World MSME Day 2023- Theme
In India, the subject for MSME Day 2023 is “Future-ready MSMEs for India@100.” This year’s theme of “Building a Stronger Future Together” is also being celebrated by the Global Council for the Promotion of International Trade. The global body is also launching #Brand10000MSMEs Network, a dynamic platform where MSMEs from around the world can connect, learn, and grow together.
World MSME Day 2023-History
- The United Nations (UN) designated 27th June as Micro, Small and Medium-sized Enterprises Day through a resolution passed in the UN General Assembly in April 2017.
- In May 2017, a programme titled “Enhancing National Capabilities for Unleashing MSMEs’ Full Potential in Achieving the Sustainable Development Goals (SDGs) in Developing Countries” was launched.
- It has been funded by the 2030 Agenda for Sustainable Development Sub-Fund of the United Nations Peace and Development Fund.
What is MSME? – An Introduction
MSME is an acronym that stands for Micro, Small, and Medium Enterprises. According to the Micro, Small, and Medium Enterprises Development (MSMED) Act of 2006, enterprises are divided into two categories.
- Manufacturing enterprises – engaged in the manufacturing or production of goods in any industry
- Service enterprises – engaged in providing or rendering services
Features of MSMEs
Here are some of the essential features of MSMEs
- MSMEs are known to provide reasonable assistance for improved access to the domestic as well as export markets for businesses
- MSMEs support product development, design innovation, intervention, and packaging elements of a business
- MSMEs advocate for the advancement of technology, infrastructure, and the overall modernisation of the sector.
- MSMEs provide employment opportunities and loans
- MSMEs provide credit limits or funding support to various banks in the country
Role of MSME in Indian Economy:
- They are the growth accelerators of the Indian economy, contributing about 30% of the country’s Gross Domestic Product (GDP).
- In terms of exports, they are an integral part of the supply chain and contribute about 48% of the overall exports.
- MSMEs also play a key role in job creation, employing over 110 million people across the country.
- Interestingly, MSMEs are intertwined with the rural economy as well, as more than half of the MSMEs operate in rural India.
