Page 43 - Banking Finance April 2021

ARTICLE

WHAT NEXT FOR

MSMES POST-

COVID-19

MSME Background The MSMEs in India play a crucial role by providing huge
employment opportunities at comparatively lower capital
India is having the largest base of Micro, Small, and Medium
cost as compared to large industries as well as through
Enterprises (MSMEs) in the world after China. The sector is
industrialization of rural & backward areas, inter alia,
engaged in the manufacturing of varied products - ranging
reducing regional imbalances, assuring more equitable
from traditional to hi-tech items and provides a wide range
of services. distribution of national income and wealth.
According to the latest available Annual Report (2018-19) MSME forms the backbone of the Indian economy and is one
of the Department of MSMEs, there are 6.34 crore MSMEs of the most important segments that let the economy grow
in the country. Out of these, 51% of MSMEs are situated in by leap and bounds. The sector which provides employment
rural India. Together, they employ a little over 11 crore to over 114 million people and contributes to more than 30
people but 55% of the employment happens in the urban per cent of the GDP.
MSMEs.
In terms of geographical distribution, the top 10 states
About the author together accounted for 74.05% of the total estimated
number of MSMEs in the country. These are Uttar Pradesh
Suraj Kumar Shoundik (14.20%), West Bengal (14%), Tamil Nadu (8%),
Manager (Research) Maharashtra (7.60%), Karnataka (6%), Bihar (5.40%),
State Bank Institute of Credit and Andhra Pradesh (5.30%), Gujarat (5.20%), Rajasthan (4.20%)
Risk Management, Gurugram
& Madhya Pradesh (4.20%).

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