Growth of MSME Sector

The Micro and Small Enterprises (MSEs) have potential for employment generation and wide regional dispersal and thus contribute to stabilizing the country’s economy.

The Government has been facilitating the promotion and development of MSEs through implementation of various schemes/programmes relating to credit, infrastructure development, technology upgradation, marketing, entrepreneurial/skill development, etc. The major schemes include Credit Guarantee Scheme, Credit Linked Capital Subsidy Scheme, Performance and Credit Rating Scheme, Cluster Development Programme, National Manufacturing Competitiveness Programme and Prime Minister’s Employment Generation Programme.

Traditionally, the MSE sector has maintained a higher rate of growth than the overall industrial sector. The data on comparative growth rates of production is available up to the year 2007-08 which shows that the MSE sector has registered higher growth rates of 12.6% and 13% against 11.9% and 8.7% in overall industrial sector in 2006-07 and 2007-08 respectively.

This information was given by the Union Cabinet Minister for Micro, Small and Medium Enterprises, Shri Virbhadra Singh in a written reply to a question in the Rajya Sabha