Parliamentary Standing Committee Discusses Enhanced Support For Labour-Intensive MSMEs

New Delhi, Jun 18 (KNN) The Parliamentary Standing Committee on Industry on Wednesday discussed measures to strengthen support mechanisms for traditional and labour-intensive micro, small and medium enterprises (MSMEs), underscoring the sector's critical role in employment generation and exports.
 
Parliamentary Panel Reviews MSME Support Framework
 
The meeting, chaired by Rajya Sabha MP Tiruchi Siva, was attended by committee members and officials from the Ministry of MSME to deliberate on issues affecting the sector and assess the effectiveness of existing support frameworks.
 
Speaking to ANI after the meeting, Siva said committee members offered suggestions aimed at further improving the functioning of MSMEs and acknowledged the sector's growing contribution to the economy.
 
MSMEs Continue To Drive Exports And Employment
 
The House panel chairman noted that MSMEs account for 48.58 percent of India's total exports and play a significant role in creating employment opportunities across the country. The committee is also examining the impact of India's recent trade agreements on the manufacturing and export sectors, he added.
 
According to government data, MSMEs contribute around 31.1 percent to India's Gross Domestic Product (GDP), generate approximately 35.4 percent of the country's manufacturing output and provide livelihoods to nearly 32.8 crore people, making them the second-largest source of employment after agriculture.
 
Rural Enterprises Key To Inclusive Development
 
The sector comprises more than 7.47 crore enterprises engaged in manufacturing, services and trade activities, with a substantial presence in rural and semi-urban areas. 
 
These enterprises support local value chains, promote non-farm employment and contribute to balanced regional development.
 
The committee highlighted the importance of strengthening MSMEs in rural and semi-urban regions to foster inclusive growth, improve productivity and integrate smaller enterprises into domestic and global supply chains.
 
Formalisation Remains A Priority
 
It also noted that a large number of MSMEs continue to operate in the informal sector, limiting their access to institutional credit and government support schemes. Formalisation of these enterprises remains a key priority to enhance their competitiveness and resilience.
 
According to official data, more than 7.9 crore MSMEs and informal micro enterprises had been registered through the Udyam and Udyam Assist platforms as of March 2026, reflecting the growing reach of formal support mechanisms for small businesses.
 
(KNN Bureau)