New Delhi, Oct 23 (KNN) The potential of the MSME sector is that it not only provides employment opportunities at a lower capital cost but also assists in the industrialization of rural and backward areas, said Assam Governor Jagdish Mukhi at the North East MSME Start Up Expo and Summit, Guwahati.

He said, “Generously endowed with vast stretches of fertile land, rich expanse of forests and substantial mineral and hydrocarbon deposits, India’s northeast is potentially one of the richest geographical areas of the country. The potential of the MSME sector not only provides employment opportunities at a lower capital cost but also assist in the industrialization of rural and backward areas.”

Mukhi said, “MSMEs are considered world-wide as prime movers of growth. The Micro, Small and Medium Enterprises (MSME) sector is a critical component of India’s growth story, making significant contributions to GDP, employment and exports.”

He added, “The total contribution of MSMEs to the GDP is around 38 per cent with around 95 per cent of all industrial units form a part of this sector.”

He further said that the government has placed a special emphasis on the development of MSMEs in Assam to bring in economic prosperity to the region and use their contribution to propel nation’s GDP.

Given a strategic location, the region can be developed as a base for India’s growing economic links not only with the ASEAN but also with neighboring countries, namely Bangladesh, Bhutan, and Nepal.

He said that given the geographical proximity of Assam and other north-eastern states with South East Asia, the region can be increasingly used as a launch pad of the country’s growing economic ties with ASEAN and BBN countries.