This document discusses the role of micro, small, and medium enterprises (MSMEs) in the Indian economy. It defines MSMEs based on investment levels and notes they are important for employment generation, innovation, regional development, and flexibility. The Ministry of MSME was created in 2007 to assist these businesses. Data shows MSMEs account for over 30 million units, 100 million jobs, and 45% of manufacturing output. They contribute significantly to exports, GDP growth, and are vital for equitable development.

1. Role of
MSME in
Indian
Economy
Presented by
Sonali Sharma
Semester III (MBA – M52)
MONIRBA,
University of Allahabad

2. OBJECTIVE
 The objectives are-
 To study the performance of MSME in
economy.
 To understand the importance and
contribution of MSME in Indian
economy.

3. CONTENT
 Definition
 Importance of MSME
 Ministry of MSME
 Performance of MSME
 Role of MSME in Indian economy
 MSME in other countries
 Conclusion

4. DEFINITION
 The MSMEs are defined on the basis of investment
in Plant & Machinery and equipments under the
MSMED Act, 2006.
 The present investment limit for MSMEs is as
under:
MANUFACTURING ENTERPRISES
(i) Micro enterprise: investment in plant and
machinery upto Rs. 25 lakh
(ii) Small enterprise: investment in plant and
machinery from Rs. 25 lakh to Rs. 5 crore.
(iii) Medium enterprise: Investment in plant and
machinery from Rs. 5 crore to Rs. 10 crore

5. contd.
SERVICE ENTERPRISES
(i) Micro enterprise: investment in
equipments upto Rs. 10 lakh.
(ii) Small enterprise: investment in
equipments from Rs. 10 lakh to Rs. 2
crore.
(iii) Medium enterprise: investment in
equipments from Rs. 2 crore to Rs. 5
crore.

6. Contd.

7. IMPORTANCE OF MSME
 To generate large scale employment
at low capital cost.
 Flexibility ensures innovation.
 Adaptability –capacity to adjust with
changing environment.
 Ensures regional development.

8. MINISTRY OF MSME
 On 9 may,2007 the ministry of Small Scale
Industries and the Ministry of Agro and
Rural Industries were merged to form
Ministry of MSME.
 It designs policies , programs, project and
scheme and monitor implementation to
assist MSMEs.

10. PERFORMANCE OF MSME
 Performance of Micro, Small & Medium
Enterprises (MSME) Sector in the country is
assessed mainly by conduct of periodic All
India Census of the Sector.
 Latest survey conducted is fourth all India
census of MSMEs
 Findings are –
Registered MSME units
 Enterprise permanently registered upto 31-
3-2007 at DICs numbering 21,04,051.

11. Contd.
SIZE of registered MSME sector
 The size of the registered MSME sector is
provisionally estimated to be 15,52,492.
Details of
working
enterprise
Micro Small Medium Total
No. of mfg
enterprise
974609 57666 2828 1035103
No. of
service
enterprise
501072 15915 402 517389
Total no. of
MSME
1475681 73581 3230 1552492

12. CONTD.
EXPORT IN MSME
 Data reveals that about 40,504 registered
units export amounting to Rs. 76,337.07
crore .
EMPLOYMENT
Per unit employment in registered section
was 5.93 .
FIXED INVESTMENT
The total fixed investment in the year 2006-07
was estimated to be Rs. 500758.36 crore.

13. S.
no.
Year Total working
enterprise
Employment Fixed asset
1. 2006-07 361.76 805.23 8,68,543.79
2. 2007-08 377.36 842.00 9,20,459.84
3. 2008-09 393.70 880.84 9,77,114.72
4. 2009-10 410.80 921.79 10,389,546.08
5. 2010-11 428.73 965.15 11,05,934.09
6. 2011-12 447.64 1,011.69 11,82757.64
7. 2012-13 447.54 1,061.40 12,68,763.67
8. 2013-14 488.46 1,114.29 13,63700.54

14. GROWTH RATE

15. ROLE OF MSME IN INDIAN
ECONOMY

16. MSME IN OTHER
COUNTRIES
China
 Has more SMEs than the total no. SMEs in
Europe and US combined.
 SMEs contribute to over 68% of export .
Japan
 Employs 70% of the wage earners .
Thailand
 Employs 60.7% of population
 Contribute 38% to the GDP.

17. CONCLUSION
 The role of MSME in economic
development of India can not be over
looked.
 This is a sector with small investment
but significant contribution.
 For a country to grow, the government
should actively promote these
enterprises.

18. THANK YOU!!