MSMEs are the largest provider of employment after agriculture: 73rd Round of National Sample Survey

The Micro, Small and Medium Enterprises (MSMEs) are the largest provider of employment after agriculture, according to 73rd Round of National Sample Survey (NSS) conducted by  National Sample Survey Office, Ministry of Statistics & Programme Implementation during the period 2015-16. 

Nitin Gadkari, Union Minister for Micro, Small and Medium Enterprises as a response to a question asked in the Rajya Sabha, said there are an estimated 11.10 crore workers in unincorporated non-agricultural MSMEs in the country engaged in different economic activities. This is excluding the MSMEs registered under (a) Sections 2m (ii) of the Factories Act, 1948, (b) Companies Act, 1956, and (c) Construction activities falling under Section F of National Industrial Classification (NIC), 2008.

The MSME Minister also said that under the Prime Minister’s Employment Generation Programme (PMEGP,) the estimated employment generated (number of persons) in micro enterprises during the years 2014-15, 2015-16, 2016-17, 2017-18 and 2018-19 are 3.58 lakh, 3.23 lakh, 4.08 lakh, 3.87 lakh, and 5.87 lakh, respectively.

The Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) was launched by the Government of India to make available collateral-free credit to the micro and small enterprise sector. Under the PMEGP scheme, the estimated employment generation has increased from 3.58 lakh to 5.87 lakh during the year 2014-15 to 2018-19.

The Ministry has established 18 Tool Rooms for integrated development of the industry by way of providing quality tools, trained personnel and consultancy in tooling and related areas, and upgradation of technology. During the year 2017-18 and 2018-19, these 18 Tool Rooms provided training to 1.47 lakh and 2.08 lakh persons, respectively, which has also helped them in self employment.

The government has taken various steps for generating employment in the country like encouraging private sector of economy, fast tracking various projects involving substantial investment, and increasing public expenditure on schemes like Prime Minister’s Employment Generation Programme (PMEGP), Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGA), Pt. Deen Dayal Upadhyaya Grameen Kaushalya Yojana (DDU-GKY) and Deendayal Antyodaya Yojana- National Urban Livelihood Mission (DAY-NULM). 

The Make in India, Skill India, and Digital India schemes are being implemented by the government and these are likely to enhance the employment base. MUDRA and START UP schemes have been initiated for facilitating self employment. In order to improve the employability of youth, Ministries/Departments run skill development schemes across various sectors. The government has also implemented the National Career Service (NCS) Project. 

Additionally, the Pradhan Mantri Rojgar Protshahan Yojana was initiated in the year 2016-17 for incentivising industry for promoting employment generation.