MSMEs: The Backbone of India's Economy
Numbers: How Many and How Much
India has tens of millions of MSMEs, most of them micro units, contributing a large share of GDP, manufacturing and exports.
Understanding the scale of MSMEs shows why policy focuses on them.
Count
There are well over 60 million MSMEs, the vast majority being micro enterprises, many run by a single owner.
Jobs
They employ a workforce second only to agriculture.
Output
MSMEs are often said to contribute around 30 per cent of GDP and a large share of exports.
Data caution
Many are unregistered, so official figures may under- or over-count depending on the source.
Micro dominance
A typical MSME is a tiny business run by the owner, not a mid-sized factory.
Picturing MSMEs as mid-sized factories
Most are very small.
Key takeaways
- There are tens of millions of MSMEs.
- Most are micro.
- They employ many people.
- Data are imperfect.
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