According to the MSME Ministry’s FY19 annual report, the MSME sector is dominated by micro-enterprises. India has 6.33 crore MSMEs out of which 6.30 crore — 99.4 per cent are micro-enterprises.
The number of registered MSMEs in FY20 has increased by 18.49 per cent to 25.13 lakh units from 21.21 lakh in FY19, according to government data. The growth rate, however, declined from 39.7 per cent in the last financial year that had increased from 15.17 lakh MSMEs registered in FY18, the data shared by the MSME Minister Nitin Gadkari in the Rajya Sabha on Monday showed. Overall the number of registered MSMEs in India in the past five years stood at 90.19 lakh. According to the MSME Ministry’s FY19 annual report, the MSME sector is dominated by micro-enterprises. India has 6.33 crore MSMEs out of which 6.30 crore — 99.4 per cent are micro-enterprises while 0.52 per cent — 3.31 lakh are medium and 0.007 per cent — 5,000 are medium enterprises.
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While an increase in the registered number of small businesses would help the government in measuring their contribution to the sector’s share in the country’s GDP along with offering various tax and investment benefits, the current scenario of Coronavirus outbreak might impact MSMEs hard given the disruption caused in the supply chain, warehousing, export credit etc. Also, the government’s decision to lockdown 75 districts where Coronavirus cases have been reported might prove to be a double whammy for MSMEs. These districts are based in Haryana, Himachal Pradesh, J&K, Karnataka, Kerala, Andhra Pradesh, Delhi, Gujarat, UP, Telangana, Rajasthan and more.
Source: Financial Express
