The Micro, Small and Medium Enterprises sector has acquired a prominent place in the growth of the economy of the country. This sector has continuously  contributedsignificantly in the gross domestic product (GDP), industrial production, employment generation and export.

The share of micro and small enterprise (MSE) sector in the GDP of the country during, 2004-05, 2005-06 and 2006-07 (latest available) is as per the table given below:

Year Share of  MSE sector  in GDP (Percentage)
2004-05 5.84
2005-06 5.83
2006-07* 7.20

*This includes medium enterprises in the sector after the enactment of micro, small and medium enterprise development (MSMED) Act, 2006.

Under the Micro, Small and Medium Enterprises Development Act (MSMED), 2006 the filing of Memorandum (Registration) by Entrepreneurs intending to establish a Micro, Small or Medium Enterprise is discretionary and not mandatory. As such, the number of Micro, Small and Medium Enterprises, functioning in the country as per Quick Results of 4th All India Census, in the registered and unregistered category are 15.52 lakh (5.94%) and 245.48 lakh (94.06%) respectively.

This information was given by the Minister of State (Independent Charge) for Micro, Small and Medium Enterprises (MSMEs) Shri Dinsha Patel in a written reply to a question in the Lok Sabha

he Micro, Small and Medium Enterprises, gross domestic product (GDP),  MSE,  Micro, Small and Medium Enterprises Development Act,