Significant Contribution of MSME Sector to India’s GDP –

 Significant Contribution of MSME Sector to India’s GDP

– Union Minister Jitan Ram Manjhi

Mumbai, July 4 : India is currently the world’s fourth-largest developed economy, and the Micro, Small, and Medium Enterprises (MSME) sector plays a vital role in this growth. The MSME sector contributes 30.1% to India’s Gross Domestic Product (GDP), 35.4% to the manufacturing sector, and 45.73% to merchandise exports. By 2029, as India aims to become the third-largest economy globally, MSMEs along with the agriculture sector will remain instrumental in achieving this target, said Union MSME Minister Jitan Ram Manjhi at a press conference held at Sahyadri Guest House.

Highlighting the role of the MSME Ministry, Mr. Manjhi stated that unlike large industries, MSMEs provide employment opportunities and foster entrepreneurship with relatively lower investments. The department also supports new entrepreneurs from Scheduled Castes (SC) and Scheduled Tribes (ST) in rural and urban areas by offering training, bank guarantees, and facilitating loans. This year, under the Khadi and Village Industries initiative, the sector generated business worth ₹170 crore through rural outreach and sales.

The minister further said that budding entrepreneurs are registered on the Udyam Portal, through which they receive training and assistance in securing bank loans and establishing their businesses. So far, MSMEs have helped provide employment to 34 crore unemployed individuals across the country. Mr. Manjhi remarked that this department alone has significantly contributed toward realizing Prime Minister Narendra Modi’s vision of providing employment to 22 crore people.