Why in News?
International Micro, Small, and Medium Enterprises (MSME) Day or World MSME Day is observed every year on 27th June all over the world to highlight the significance of MSMEs and how they play a crucial role in being the backbone of the country’s economy.
World MSME Day 2023- Theme
The theme MSME Day 2023 in India is “Future-ready MSMEs for India@100.” The Global Council for the Promotion of International Trade is also celebrating the day with “Building a Stronger Future Together” theme of this year. The global body is also launching #Brand10000MSMEs Network, a dynamic platform where MSMEs from around the world can connect, learn, and grow together.
World MSME Day 2023-History
- The United Nations (UN) designated 27th June as Micro, Small and Medium-sized Enterprises Day through a resolution passed in the UN General Assembly in April 2017.
- In May 2017, a program titled ‘Enhancing National Capacities for Unleashing Full Potentials of MSMEs in Achieving the Sustainable Development Goals (SDGs) in Developing Countries was launched.
- It has been funded by the 2030 Agenda for Sustainable Development Sub-Fund of the United Nations Peace and Development Fund.
What is MSME? – An Introduction
MSME stands for Micro, Small, and Medium Enterprises. In accordance with the Micro, Small, and Medium Enterprises Development (MSMED) Act in 2006, the enterprises are classified into two divisions.
- Manufacturing enterprises – engaged in the manufacturing or production of goods in any industry
- Service enterprises – engaged in providing or rendering services
Features of MSMEs
Here are some of the essential features of MSMEs
- MSMEs are known to provide reasonable assistance for improved access to the domestic as well as export markets for businesses
- MSMEs support product development, design innovation, intervention, and packaging elements of a business
- MSMEs support the upgrading of technology, infrastructure, and the modernization of this sector as a whole
- MSMEs provide employment opportunities and loans
- MSMEs provide credit limits or funding support to various banks in the country
Role of MSME in Indian Economy:
- They are the growth accelerators of the Indian economy, contributing about 30% of the country’s Gross Domestic Product (GDP).
- In terms of exports, they are an integral part of the supply chain and contribute about 48% of the overall exports.
- MSMEs also play an important role in employment generation, as they employ about 110 million people across the country.
- Interestingly, MSMEs are intertwined with the rural economy as well, as more than half of the MSMEs operate in rural India.