In order to recognize the vital role that MSME businesses play in economic growth, development, and job creation worldwide, 27th June is celebrated as MSME Day (Micro, Small, and Medium-sized Enterprises Day). We celebrate these enterprises and recognise their importance, shed light on their contributions, and promote their growth and sustainability. This day serves as a platform for world leaders to convene and engage in discussions pertaining to the chosen MSME Day theme, with the aim of formulating policies that promote growth in those areas.
This year’s theme emphasizes the vital role of MSMEs in fostering global collaboration, encouraging innovation, and supporting entrepreneurs across sectors. It highlights the need to build stronger networks that empower small businesses to thrive in an increasingly interconnected world. MSME’s are the backbone of India’s economic landscape, pivotal in employment generation, entrepreneurship promotion, and economic development.
The first MSME Day was celebrated on June 27th, 2017, as a result of a resolution adopted by the UN General Assembly in April 2017. The MSME Day began with the United Nations General Assembly officially designating it to raise awareness about the importance of MSMEs in achieving sustainable development goals.
MSMEs are of great importance in India’s economic development, serving as engines of growth and drivers of socio-economic progress. These enterprises are integral to job creation, particularly in rural and backward areas, contributing significantly to the reduction of unemployment and poverty. MSMEs are a vital component of the global economy, representing approximately 90% of businesses, contributing to over 70% of employment, and accounting for about 50% of the world’s GDP. In emerging economies, formal MSMEs contribute up to 40% of national income (GDP).
MSME Day not only serves to raise awareness of the significant value MSMEs bring to the global economy but also acts as a catalyst to motivate individuals to give their business to these enterprises instead of large corporations. By understanding the importance of MSMEs and the positive impact their support can have, people are empowered to contribute directly to the growth and sustainability of these businesses, fostering economic diversity, local entrepreneurship, and community development. The MSME sector in India makes a contribution of around 30% to the nation’s GDP.
Moreover, it contributes about 40% to the total exports of India and provides more than 110 million job opportunities in the country. The Micro, Small, and Medium Enterprises (MSME) sector in India, formally established by the MSMED Act of 2006, encompasses businesses engaged in manufacturing, processing, or preservation of goods. Under the recent classifications of the Aatma Nirbhar Bharat Abhiyan 2020, MSMEs are categorised based on their investment levels.
The role of MSMEs in the Indian economy is crucial for several reasons. It serves as a significant source of employment, particularly in economically disadvantaged regions, contributing to poverty alleviation and inclusive growth. MSMEs serve as significant sources of employment, particularly in economically disadvantaged regions. They provide opportunities for both skilled and unskilled labour, thereby contributing to job creation and reducing unemployment rates.
Let us celebrate the MSME Day to serve as an opportunity to highlight their significant role in sustainable development and economic progress, thereby raising public awareness of their contributions.
(Written by Vinod Chandrashekhar Dixit)
