Summary Note
Key concept recap
Introduction to MSME
Micro, Small and Medium Enterprises (MSMEs) are a vital pillar of India's economy, contributing approximately 29.7 per cent of GDP and 49.66 per cent of exports. The sector employs nearly 60 million people through 28.5 million enterprises, making it the second largest employer after agriculture. MSMEs are spread across traditional and modern industries, covering eight subgroups including handlooms, handicrafts, coir, sericulture, khadi and village industries, small scale industries, and powerlooms.
MSMEs act as ancillary units complementary to large industries and form an integral part of the value chain. They encourage indigenous skills, grassroot innovations, and entrepreneurship development. Their contribution ranges from simple consumer goods to high-precision products, and even vital components for India's space missions such as Mangalyaan and Chandrayaan-2.