MSME Sector Struggles To Regain Pre-Pandemic Momentum

ENA MSME 2023-12-13 16:33:48 New Delhi, Dec 13 (KNN) The share of Micro, Small and Medium Enterprises (MSMEs) in India's Gross Domestic Product (GDP) in 2021-22 was 29 per cent, reflecting a decline from the sector's pre-pandemic highs, attributed to the lingering impact of COVID-19. Data presented in Parliament on Monday revealed that the contribution of MSMEs to India's gross value added, a measure of the country's total output, reached 31 per cent in 2018-19 but subsequently witnessed a decline during the pandemic years. While India's overall exports witnessed a 44 per cent increase from USD 313 billion in FY20 to USD 450 billion in FY23, the contribution of MSMEs to this growth remained subdued. Despite achieving a substantial USD 200 billion in exports in FY23, MSMEs' share in India's total exports fell to a concerning five-year low of 44 per cent. Meanwhile, the closure of over 13,000 MSMEs in FY23, representing the highest number in the past four years, contradicts the government's targets for the sector's contribution to GDP and exports. Union Minister Nitin Gadkari announced in 2020 the government's aim to substantially enhance the MSME sector's contribution to the GDP, targeting an increase from 30 per cent to 50 per cent, and to its export share, aiming for a rise from 49 per cent to 60 per cent, within a five-year timeframe. Over 123 million individuals have found employment in the sector since 2020-21, with Maharashtra, Tamil Nadu, Uttar Pradesh, Karnataka, and Telangana leading the way in terms of job creation. (KNN Bureau) 35886 https://knnindia.co.in/news/newsdetails/msme/msme-sector-struggles-to-regain-pre-pandemic-momentum 2023-12-13 16:33:48 knnindia.co.in MSME Sector Struggles To Regain Pre-Pandemic Momentum