7.9 million MSMEs contribute a formidable 33% to the GDP, providing jobs for over 120 million people. Let’s take a look at how these enterprises are the driving force behind economic growth.
The MSME sector generates 360.41 lakh jobs out of the 11.10 crore jobs. The jobs mainly belong to the manufacturing sector, in the rural and urban areas, with 387.18 lakh jobs in trade and 362.82 lakh jobs in other services across the country. The MSMEs that were founded in the year 2022, employed more than 1 crore people.
Now let’s get into the crux of MSME job creation.
The food industry stands out as the leading employer, providing work opportunities for 480,000 individuals. Following closely behind is the non-metallic mineral goods sector, which employs 450,000 people, while the metal products industry comes in third, offering jobs to 370,000 individuals. These industries emerge as primary contributors to employment opportunities across various sectors.
Additionally, a significant portion of jobs, accounting for 49%, is generated by several industries, including machinery parts (excluding electrical), chemicals, paper products, wood products, basic metal industries, hosiery and garments, rubber and plastic products, and repair services. Despite their collective contribution, these industries collectively account for less than 5% of overall employment generation.
When considering rural employment distribution, industries beyond metals play a notable role, constituting 22.7% of job creation. Within rural areas, the food goods sector claims the largest share at 21.1%, followed by wood products and chemical products, each contributing 17.5% to the employment market.
In urban areas, metal and food industries each claim 22.8% of employment, while the chemical, non-electrical machinery, and non-metallic mineral sectors collectively provide 26.2% of urban jobs. Metropolitan areas see dominance from metal products, paper printing, and machinery parts (excluding electrical), comprising 33.6% of total employment.
In conclusion, analyzing business numbers helps small businesses make better choices for long-term success. MSMEs are crucial for India’s economy, contributing over 29% to the GDP and half of the country’s exports. They also create one-third of India’s manufactured goods and provide jobs for over 11 crore people. The goal is to increase employment to 15 crore, highlighting the need to support MSME growth for a stronger economy.
If you, as an entrepreneur, would like to register your business as an MSME, and need one-on-one consultation for other business needs, contact us on bug@bharatudyoggaurav.com
