Micro Small and Medium Enterprises (MSMEs) sector has been one of the major drivers of the socio-economic development of our country. MSMEs contribute about 8% of the country’s GDP, nearly 45% of the manufacturing output, and approximately 40% of the country’s exports, this is a significant contribution that cannot be ignored.
The government of India has provided various provisions for MSMEs to flourish. ‘Atma Nirbhar Bharat Abhiyan’ or the Self-Reliant India Scheme of 2020 by the Government of India has provided a boost to MSMEs. This has in turn provided great opportunity areas for the socio-economic development of the rural areas.
Why are MSMEs important for Rural Development in India?
- MSMEs act as ancillary units to existing large industries. They play a crucial role in providing larger employment opportunities, help in the industrialization of rural & backward areas thereby giving a chance for equitable distribution of national income and wealth.
- Khadi and Village Industries are two national heritages of India which serve the basic needs of processed goods of the vast rural sector of the country, but also provide sustainable employment to rural artisans. These heritage products have a potential clientele in the middle and upper class of our country.
- Another example is the Coir industry which has high global acceptability due to its environmentally friendly aspect has huge export opportunities if we bring in little technological interventions.
- MSMEs have provided aid to such industries and the government of India in conjunction with state governments have come up with a lot of MSME-friendly policies which support them further.
How do MSMEs help in Rural Development?
- MSMEs work for the welfare of our workers and artisans by providing them with an opportunity for employment and financial aid to help grow and bring their products to a larger platform.
- This helps in the development of entrepreneurship skills among this set of people. Further, it helps in up-gradation of skills by launching specialized training centers for the same.
- It not only helps in people’s development but also leads to the up-gradation of technology and infrastructure in rural areas.
- It also supports our effort to become a self-reliant nation.
MSMEs play an important role in our country’s economy. Over the last few years, as consumers, we have seen a high influx of homegrown products in the market thanks to them. These industries require low capita investments and provide high employment rates as compared to large industries. MSMEs have acted as a platform to showcase our gems on a larger scale which not only is a growing opportunity domestic but has a great demand internationally as well. Another feather in the cap for our MSMEs is that the products which they bring to the table are also sustainable and environmentally friendly.
Case Study: Phool.co
- Based on the idea of converting recycling temple waste into something more useful like flower cycled incense.
- Started also with an objective to reduce pollution in Ganga due to continuous inflection of flower waste this organization has grown since inception and has spread its wings in 3 cities with a PAN Indian clientele.
- They believe in following eco-friendly practices by proving biodegradable packaging and providing great employment opportunities to our women.
I would urge my readers to support such enterprises which build our Indian economy.
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************************************************************************************ References: https://www.lendingkart.com/msme-loan/what-is-msme/ https://www.ibef.org/industry/msme.aspx https://msme.gov.in/about-us/about-us-ministry https://phool.co/ Image - https://www.civilsdaily.com/burning-issue-msmes-the-lifeline-of-the-indian-economy/ Image - https://www.simpliance.in/blog/the-perks-of-being-a-registered-msme-in-india/ Image - https://www.ciiblog.in/msme-growth-driver-of-the-indian-economy/ Disclaimer: This is not a sponsored post. ************************************************************************************