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MSMEs Drive Employment Surge in India, Over 19 Crore Jobs Generated

1 week ago
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In a significant boost to the country’s employment landscape, micro, small, and medium enterprises (MSMEs) have reported a remarkable milestone, surpassing the 19-crore job mark, as revealed by data from the Udyam registration portal.

Here’s a closer look at the key findings and government initiatives driving this surge:

 

Explosive Job Growth

The Udyam registration portal, a vital platform for MSMEs, has witnessed a meteoric rise in job creation. Over 4.40 crore MSMEs, registered with the MSME Ministry via the Udyam certification, have collectively generated a staggering 19.09 crore jobs.

This marks a significant leap from 8.81 crore reported jobs in November 2022, reflecting a growth rate of more than 2x.

 

Inclusive Workforce

The employment surge is inclusive, with 4.27 crore women employees contributing to the workforce. Additionally, 2.15 crore employees are engaged in enterprises not covered under the GST regime or exempted from the CGST Act, 2017.

 

Government Initiatives Fuel Growth

Government initiatives aimed at boosting MSMEs have played a pivotal role in this employment upsurge. The Department of Economic Affairs (DEA) under the Finance Ministry highlighted the positive impact of revised MSME definitions, which have facilitated ease of doing business, encouraged investment, and spurred employment generation.

Furthermore, the launch of the Emergency Credit Link Guarantee Scheme (ECLGS) has alleviated liquidity challenges for MSMEs, resulting in a decline in Non-Performing Assets (NPAs).

 

Revised MSME Definition

The redefinition of MSMEs, announced on June 1, 2020, has been a game-changer. Previously based on investment in plant and machinery, the new definition now encompasses enterprises with turnover up to Rs 250 crore and investment up to Rs 50 crore, broadening the scope and support for MSMEs.

 

Data Gap

Despite the positive momentum in job creation, there remains a notable data gap concerning job losses within the MSME sector. Minister of State in the MSME ministry, Bhanu Pratap Singh Verma, acknowledged the absence of comprehensive data on temporary or permanent job losses in the sector, citing the presence of MSMEs in both formal and informal sectors.

As MSMEs continue to emerge as a driving force for employment generation, concerted efforts to bridge data gaps and sustain growth momentum will be crucial for fostering a robust and inclusive economic ecosystem.