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India’s MSME sector holds key to 1 Cr plus jobs in next 4- 5 years
Economy

India’s MSME sector holds key to 1 Cr plus jobs in next 4- 5 years

Agency News

Kolkata, Apr 16 : Nomura Research Institute Ltd, a consulting and solutions firm, after a study on the employment opportunity indices in India predicted that India’s MSME (Micro, Small and Medium Enterprises) sector is poised to create 1 crore jobs in the next 4-5 years.

The report stated that the growth of the middle class and rising disposable income positions in India as an attractive market for consumption. However, a substantial portion of what is consumed in India is catered to by imports, thereby limiting the domestic manufacturing sector’s ability to create employment opportunities.

While there have been efforts to boost domestic manufacturing, a dedicated focus on manufacturing MSMEs spread across various clusters can lead to the creation of these many jobs, through measures aimed at improving the market competitiveness of MSMEs. The manufacturing sector in India needs to shoulder the dual responsibility of accommodating the shift of labour from agriculture and also cater to the added labour force, the study says.

As per the Ministry of MSME’s annual report 2017-18, the MSME sector contributes to 3.6 crore jobs (70%) in the manufacturing sector. The MSMEs have been spread across various clusters in India (as per UNIDO). A detailed look into product groups manufactured in various clusters, such as 1) artificial jewellery, sports goods, scientific instruments, plastic toys etc; 2) Metal utensils, machine equipment like textile machinery, electric fans, mixers, threshers etc; 3) Rubber, plastic, Leather & related products; 4) Bicycle parts and auto components; and 5) Textile, wood, paper, food, minerals and chemical products in India suggests that a dedicated focus on developing these MSMEs can create additional 75 lakh -1Cr. employment opportunities in the next 4-5 years through partial substitution of imports.

“The manufacturing ecosystem is constantly evolving under the influence of several trends around changing consumer behaviour and technological shifts happening across the globe. This puts India’s domestic micro and small-scale industries into the driver’s seat to lead the employment generation. To scale-up, the MSME sector needs a market-oriented strategy based on two key areas of Demand-Led Manufacturing and Advocacy Marketing of the products,”said Partner & Group Head at NRI Consulting & Solutions Ashim Sharma. (UNI)