India's MSME sector poised to create 1 crore jobs in next 4-5 years: Report
Hyderabad, Apr 10 (KNN) India's Micro, Small and Medium Enterprises (MSME) sector is poised to create up to 1 crore jobs in next 4-5 years through measures aimed at improving the market competitiveness of MSMEs, said a report.
The report by Nomura Research Institute (NRI Consulting & Solutions) on the country's MSMEs said that dedicated focus on developing MSMEs in various clusters like rubber, metal, plastics, textiles etc. can create additional 75 lakh -1Cr. employment opportunities in next 4-5 years through partial substitution of imports.
The manufacturing sector in India needs to shoulder the dual responsibility of accommodating the shift of labour from agriculture and also cater to the added labour force, it added.
As per the Ministry of MSME annual report 2017-18, the MSME sector contributes to around 3.6 crore jobs in the manufacturing sector. The MSMEs have been spread across various clusters in India (as per UNIDO).
According to report, a detailed look into the product groups manufactured in various clusters such as artificial jewellery, sports goods, scientific instruments, textile machinery, electric fans, rubber, plastic, leather & related products, among others, suggests that a dedicated focus on developing these MSMEs can create additional job opportunities.
Partner & Group Head at NRI Consulting & Solutions, Ashim Sharma said, "The manufacturing ecosystem is constantly evolving under the influence of several trends around changing consumer behaviour and technological shifts happening across the globe. This puts India's domestic micro and small-scale industries into the driver's seat to lead the employment generation.”
To scale-up, the MSME sector needs a market-oriented strategy based on two key areas of Demand Led Manufacturing and Advocacy Marketing of the products, he added.
The report further elaborates upon the role of Advocacy Marketing in helping develop a positive perception about the products manufactured by MSMEs as many of the traditional industries lose out on imports due to their perception of being "cheap" and "poor quality" not being "trendy", etc.