Over 13 million MSME jobs created in 4 years: CII Survey
Maharashtra, Gujarat, and Telangana were the largest job generators in the MSME sector. But in terms of exporters, Maharashtra, Tamil Nadu, and Telangana were the top three states.
The MSME sector has seen job creation grow by 13.9 percent in the last four years, with micro enterprises the biggest contributor, according to a CII survey published in various media publications. PTI reported that the survey projects this growth to continue over the next three years.
Data showed that in over one lakh MSMEs, 3,32,394 new jobs were created in the time period that amounts to a 3.3 percent increase per year over the last four years. The survey added: ‘Given that the total workforce size, according to the Labour Bureau, is estimated at 450 million, the overall job additions work out to 13.514.9 million per annum.’
It was also found that Maharashtra, Gujarat, and Telangana were the largest job generators in the MSME sector. But in terms of exporters, Maharashtra, Tamil Nadu, and Telangana were the top three states. The major sectors of job creation were hospitality and tourism, textiles and apparels, metal products, machinery, etc.
Rakesh Bharti Mittal, President, CII, said, “The survey establishes a growth of 3.3 per cent (compounded growth rate) per annum. When mapped to the macro level data sourced from Labour Bureau, this works out to an estimated additional job creation to the tune of 13.5 to 14.9 million per annum.”
The survey added the initiatives being undertaken by the government to boost the sector may drive growth even further. The two percent interest rate subvention to all MSMEs and Trade Receivable e-Discounting System (TReDS) were indicated as potential drivers for growth.
A different survey, by India SME Forum, had also found high rates of job creation in the MSME sector in the last four years. It had recorded the creation of 2.46 lakh jobs in the aftermath of the implementation of demonetisation and GST. It had added that the MSME sector had welcomed the implementation of Goods and Services Tax (GST), but demonetisation had resulted in job losses in many MSMEs.
However, a December 2018 survey by All India Manufacturers’ Organisation (AIMO) had found that MSMEs and traders have seen 35 lakh jobs lost in the past four-and-a-half years. The sector showed declining profits since 2014, and the reasons attributed were demonetisation and GST rollout.
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Nearly 2.46 lakh MSME jobs created post-demonetisation and GST: India SME Forum Survey