June 27th 2024.
The Indian micro, small, and medium enterprises sector is a vital part of the country's economy, employing a staggering 1.2 crore individuals. According to a recent report by NLB Services, a global technology and digital talent solutions provider, this number is expected to increase significantly by 2025, creating over two lakhs new job opportunities. These jobs will be spread across various industries, including services and manufacturing, in both urban and rural areas.
It is worth noting that the MSME umbrella also covers emerging industries such as e-commerce, logistics, and supply chain, which are expected to see a surge in employment opportunities. "India has the largest number of micro, small, and medium enterprises in the world, with 633.9 lakh enterprises. These enterprises play a crucial role in generating employment, especially in tier 2 and 3 regions," said Sachin Alug, CEO of NLB Services.
Small businesses, which make up 96% of industrial units in the country, are the second-largest employment generator. In fact, the MSME ecosystem contributes to over 33% of the GDP and drives 62% of the domestic employment. However, compared to other emerging economies, the average contribution of MSMEs in employment generation in India is only 77%, indicating untapped potential.
According to Alug, with the rise of digitization and the post-pandemic shift in the workforce, MSMEs will experience a higher demand for roles such as construction, manufacturing, transportation, and supply chain management. The report also predicts that the majority of these new roles will be created in states like Andhra Pradesh, Gujarat, Karnataka, Maharashtra, Tamil Nadu, and Telangana.
The report also highlights the significant role played by women-led enterprises in the MSME sector. Currently, these enterprises make up 20.44% of micro-businesses, 5.26% of small businesses, and 2.77% of medium businesses. Interestingly, compared to male-owned MSMEs, women-led MSMEs have shown better growth in income. The report predicts a 20-25% increase in the number of women-led MSMEs over the next five years, which will further contribute to job creation.
In conclusion, the MSME sector in India has a bright future, with a significant potential for job creation. As the country continues to embrace technology and adapt to a changing workforce, we can expect to see a surge in employment opportunities, particularly in the MSME sector. With the right support and policies, this sector has the power to drive the country's economy and provide employment opportunities for millions of individuals.
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