Performance of the MSMEs sector in India

A study by ResearchGate in March 2017 on the ‘Performance of the MSMEs sector in India’, the authors concluded that though MSME total working enterprises, employment and market value of fixed assets has grown at CAGR of 4.39%, 4.75%, and 6.64% respectively, the contribution from manufacturing and service sector MSME contribution to GDP is -1.53% and 1.82% respectively.

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Though the government has taken measure to improve the productivity, over the last seven years the MSME contribution to GDP has not increased to an acceptable level. The study suggests that the government adopt an integrated policy, providing sound data with efficient governance, promote skill development to increase productivity and providing accessible credit through government-sponsored agency exclusively to MSME is essential to increase productivity and contribution to economic growth.

Read the full report here: Performance of MSMEs Sector in India