Why is it in the news ?
- The Confederation of Indian Industry(CII) survey of over one lakh small and medium enterprises have shown 13.9% increase in net jobs created in the MSME sector in last four years or 3.3% per annum.
More in the news
Findings of the Survey:
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Maharashtra, Gujarat and Telangana have been the largest job generators over the past four years.
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In the case of case of exporters, Maharashtra, Tamil Nadu and Telangana have emerged as the top three states.
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About 73% of the jobs were created by micro enterprises.
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Small enterprises, on the other hand, accounted for 23% of the net jobs created, while medium enterprises accounted for just 4%.
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Nearly two-thirds of the respondents witnessed an increase in hiring activity over the last four years, while 17% witnessed no change.
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The hospitality & tourism sector accounted for 12% of the jobs, while the textiles & apparels and metal products sectors each contributed about 8% to job creation.
MSMEs
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The MSME sector comprises more than 63 million units and employs about 111 million people.
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The share of MSMEs in GDP is about 30%, with the sector accounting for about 45% of manufacturing output and about 40% of India’s total exports.
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The Micro, Small and Medium Enterprises Development (MSMED) Act, 2006 is amended to define units producing goods and rendering services in terms of annual turnover as follows:(1) A micro enterprise will be defined as a unit where the annual turnover does not exceed Rs 5 crores;(2) A small enterprise will be defined as a unit where the annual turnover is more than Rs 5 crore but does not exceed Rs 75 crore;(3) A medium enterprise will be defined as a unit where the annual turnover is more than Rs 75 crore rupees but does not exceed Rs 250 crore.
Source
The Hindu.