Contribution of MSMEs to GDP



Quick Summary
Micro, Small, and Medium Enterprises (MSMEs) play a significant role in the Indian economy, contributing around 30% to the nation's Gross Domestic Product (GDP) in recent years. The sector also accounts for a substantial portion of manufacturing output and exports. Furthermore, MSMEs are a major source of employment, with millions of workers engaged in the sector.

As per the information received from Central Statistics Office, Ministry of Statistics & PI, Share of MSME Gross Value Added (GVA) in All India Gross Domestic Product at current prices (2011-12) for the year 2018-19 and 2019-20 were 30.5% and 30.0% respectively.

The MSME sector is an important sector of the Indian economy. As per the information received from Central Statistics Office, Ministry of Statistics & PI, share of MSME Gross Value Added (GVA) in All India Gross Domestic Product at current prices (2011-12) for the year 2018-19 and 2019-20 were 30.5% and 30.0% respectively. The share of the MSME manufacturing in All India manufacturing gross value output during the year 2018-19 and 2019-20 were 36.9% and 36.9% respectively.  Further, as per the information received from Directorate General of Commercial Intelligence and Statistics, the share of export of specified MSME related products to All India exports during 2019-20 and 2020-21 was 49.8% and 49.5% respectively.

MSME Contribution to India s GDP Revealed

As per 73rd Round of NSS Report on Unincorporated Non-Agricultural Enterprises' (July 2015- June 2016) conducted by Ministry of Statistics & PI, estimated number of workers in MSME sector was 11.10 crore.

Under the Prime Minister’s Employment Generation Programme (PMEGP), the estimated employment generated (number of persons) in micro enterprises during the year 2020-21 and 2021-22 (as on 01.07.2021) are 5.95 lakh and 1.19 lakh respectively.

This information was given by Union Minister for Micro, Small and Medium Enterprises, Shri Narayan Rane in a written reply in Rajya Sabha today.

FAQ :

MSMEs contributed 30.5% to India's GDP in 2018-19 and 30.0% in 2019-20, based on Gross Value Added (GVA) at current prices.

The share of MSME manufacturing in India's total manufacturing gross value output was 36.9% for both 2018-19 and 2019-20.

The share of exports from specified MSME-related products to all Indian exports was 49.8% in 2019-20 and 49.5% in 2020-21.

An estimated 11.10 crore workers were employed in the MSME sector as of July 2015-June 2016.

PMEGP is a scheme that generates employment in micro enterprises. In 2020-21, it generated employment for 5.95 lakh persons, and in 2021-22 (as of July 1, 2021), it generated employment for 1.19 lakh persons.




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