New Delhi, June 22 (KNN) The International Micro, Small and Medium Enterprises (MSME) Day is observed every year across the world on June 27 to celebrate the strong contribution of MSME businesses in growth and development of any economy. The day marks the importance of MSMEs in the development of the country in terms of creating employment opportunities.

MSME Day 2019 is dedicated to raising awareness of the need for greater investment into small and mid-sized businesses in developing countries but it is also a celebration of the gigantic contribution smaller companies make to the global economy, often away from the spotlight.

Recognizing the importance of MSMEs in achieving sustainable development goals and in promoting innovation, creativity and sustainable work for all, the United Nations General Assembly in its 74th Plenary held on the 6th April, 2017 declared 27th June as MSME Day.

This year is the third edition after the day was instituted in April 2017. The day highlights strong contribution of MSME business worldwide to livelihoods, communities and economies and need to support MSMEs towards their success.

In line with the theme of MSME Day, MSMEs directly or indirectly contribute to achieving the Sustainable Development Goals (SDGs) that ITC supports.

To mark this day, Ministry of MSME every year celebrates this day with all organizations under the Ministry by organizing seminars/workshops for the MSMEs throughout the country.

The MSME sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades. It contributes significantly in the economic and social development of the country by fostering entrepreneurship and generating largest employment opportunities at comparatively lower capital cost, next only to agriculture.

Although MSMEs generate the most new jobs, they face many challenges in day-to-day operations and to grow. Access to finance is often cited as one of the primary obstacles that affect MSMEs disproportionately.

According to the World Bank, there are 200 to 245 million formal and informal enterprises that do not have a loan or overdraft, but are in need of one, or do have a loan but still find access to finance as a constraint. More than 90 percent are MSMEs.

MSMEs are given importance because they are major job providers and catalyst for growth. They are a critical force in realizing the Sustainable Development Goals (SDGs), they promote innovation, creativity and decent work for all. Moreover, four in five new formal jobs created in emerging markets are among MSMEs only.

MSMEs in the Indian Economy have shown tremendous growth and excellent performance over the time with the contribution of policy framework and efficient steps which had been taken by the Government time to time for the growth and development of the MSME.

MSMEs in India has often been termed as ‘engine of growth’ for developing economies and requires facilitation from the Government to minimize the transaction costs of technology upgradation, market penetration, modernisation of infrastructure etc.