Lok Sabha Question No. 2002 (UNSTARRED), answered on 2022-07-28
Subject: Contribution of MSME Sector in GDP/Employment
Ministry: MICRO,SMALL AND MEDIUM ENTERPRISES
Asked by: Mimi Chakraborty, Chandeshwar Prasad

## GOVERNMENT OF INDIA MINISTRY OF MICRO, SMALL AND MEDIUM ENTERPRISES

## LOK SABHA UNSTARRED QUESTION No. 2002 TO BE ANSWERED ON 28.07.2022

## CONTRIBUTION OF MSME SECTOR IN GDP/EMPLOYMENT

2002.   MS. MIMI CHAKRABORTY: SHRI CHANDESHWAR PRASAD:

Will   the   Minister   of   MICRO,   SMALL   AND   MEDIUM   ENTERPRISES   be  pleased to state:

- (a) the  total  contribution  of  the  MSME  sector  to  GDP  of  the  country  and  share  in  export during the last five years and the current year;
- (b) the details of empolyment generated and people employed in the MSME sector during the last five years and the current year;
- (c) the  details  of  the  important  steps  taken  and  achievements  made  in  the  aforesaid  sector during each of the last three years and the current year;
- (d) the details of employment lost in MSMEs during Covid-19 pandemic from February, 2020 to November, 2021;
- (e) whether  there  has  been  massive  fall  in  employment  in  June,  2022  itself  and  if  so,  the details thereof; and
- (f) the steps being taken by the Government to tackle the unemployment rate which rose from 7.1 percent in May to 7.8 percent in June with rural unemployment rising by 1.4 percentage points to 8 percent in MSME sector?

## ANSWER

## MINISTER OF STATE FOR MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI BHANU PRATAP SINGH VERMA)

## (a): As per information received from Ministry of Statistics & Programme Implementation, the share of Gross Value Added (GVA) of MSME in All India GDP was as follows:

| Year    | Share of MSMEin All India GDP(in %)   |
|---------|---------------------------------------|
| 2016-17 | 29.25%                                |
| 2017-18 | 29.69%                                |
| 2018-19 | 30.50%                                |
| 2019-20 | 30.50%                                |
| 2020-21 | 26.83%                                |

As  per  information  received  from  Directorate  General  of  Commercial  Intelligence  and Statistics (DGCIS), the share of Export of specified MSME related products in All India Exports was as follows:

| Description                                                   |   2017-18 |   2018-19 |   2019-20 |   2020-21 |   2021-22 |
|---------------------------------------------------------------|-----------|-----------|-----------|-----------|-----------|
| %share of Export of MSME related products in All India Export |     48.56 |      48.1 |     49.77 |     49.35 |     45.04 |

(b): As  per  Udyog  Aadhar  Portal  and  Udyam  Registration  Portal,  the  number  of  persons employed in the MSMEs which are registered on these portals (as on 22.07.2022) are as follows:

| Udyog Aadhar Portal       | Udyog Aadhar Portal        | Udyog Aadhar Portal        | Udyog Aadhar Portal        | Udyog Aadhar Portal        |
|---------------------------|----------------------------|----------------------------|----------------------------|----------------------------|
|                           | Number of persons employed | Number of persons employed | Number of persons employed | Number of persons employed |
| Year                      | Micro                      | Small                      | Medium                     | Total                      |
| 2017-18                   | 52,14,407                  | 28,43,664                  | 5,97,256                   | 86,55,327                  |
| 2018-19                   | 74,66,841                  | 36,74,437                  | 7,06,321                   | 11,847,599                 |
| 2019-20                   | 87,35,066                  | 40,09,747                  | 7,92,042                   | 1,35,36,855                |
| 2020-21 (Till 30/06/2020) | 40,247,14                  | 27,32,849                  | 7,21,990                   | 74,79,553                  |
| UDYAMRegistration Portal  | UDYAMRegistration Portal   | UDYAMRegistration Portal   | UDYAMRegistration Portal   | UDYAMRegistration Portal   |
| Year                      | Number of persons employed | Number of persons employed | Number of persons employed | Number of persons employed |
|                           | Micro                      | Small                      | Medium                     | Total                      |
| 2020-21 (from 01/07/2020) | 1,71,99,355                | 67,67,695                  | 38,86,603                  | 2,78,53,653                |
| 2021-22                   | 3,10,01,692                | 35,87,221                  | 10,76,969                  | 3,56,65,882                |
| 2022-23 (Till 30/06/2022) | 83,60,057                  | 4,49,968                   | 1,32,040                   | 89,42,065                  |

(c): The  Ministry  of  Micro,  Small  and  Medium  Enterprises  (MSME)  implements  various schemes and programmes aimed at promotion and development of MSME Sector in the country. These schemes/programmes include MSME Champions Scheme (Erstwhile CLCS-TUS), Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE), Prime Minister's Employment Generation Programme (PMEGP), Micro and Small Enterprises -Cluster Development Programme (MSE-CDP) and Emergency Credit Line Guarantee Scheme (ECLGS).

Post Covid-19, Government has taken a number of initiatives under Aatma Nirbhar Bharat Abhiyan to support the MSME Sector in the country especially in Covid-19 pandemic. Some of them are:

- i. Rs.3  lakh  crores  Emergency  Credit  Line  Guarantee  Scheme  (ECLGS)  for  Businesses, including  MSMEs  (which  has  subsequently  been  increased  to  Rs.  5  lakh  crore,  as announced in Budget 2022-23).
- ii. Rs. 50,000 crore equity infusion through Self Reliant India Fund.
- iii. New revised criteria for classification of MSMEs.
- iv. New Registration of MSMEs through 'Udyam Registration' for Ease of Doing Business.
- v. No global tenders for procurement up to Rs. 200 crores.

Also,  retail  and  whole  sale  trades  are  allowed  to  be  registered  on  Udyam  Registration Portal. However, the benefits to Retail and Wholesale trade MSMEs are to be restricted to Priority Sector Lending only. Street vendors can also register as retail traders on Udyam Registration (UR) portal and avail the benefit of Priority Sector Lending.

The number of MSMEs registered on Udyam Registration portal during last three years (as on 22.07.2022) is as follows:

| Year                      | Number of MSMEs   |
|---------------------------|-------------------|
| 2020-21 (from 01.07.2020) | 28,55,308         |
| 2021-22                   | 51,56,544         |
| 2022-23 (till 30.06.2022) | 13,54,579         |

Ministry  of  Micro,  Small  and  Medium  Enterprise  (MSME)  launched  Credit  Guarantee Scheme (CGS) to strengthen credit delivery system and to facilitate the flow of credit to the Micro & Small Enterprise (MSE) sector without the hassles of collateral and third-party guarantee. The details of CGTMSE beneficiaries and guarantee approved during last three years are mentioned below:-

| Year    | Number of beneficiaries   | Guarantee Amount (Rs. In Crore)   |
|---------|---------------------------|-----------------------------------|
| 2019-20 | 8,46,650                  | 45,851                            |
| 2020-21 | 8,35,592                  | 36,899                            |
| 2021-22 | 7,17,020                  | 56,172                            |

The number of beneficiaries and the total amount released in Entrepreneurship and Skill Development Programme (ESDP) are as follows:

| Year    | Total trainees/ beneficiaries (in numbers)   | Total amount released (Rs. In lakhs)   |
|---------|----------------------------------------------|----------------------------------------|
| 2019-20 | 2,33,507                                     | 4,085                                  |
| 2020-21 | 27,544                                       | 287                                    |
| 2021-22 | 58,659                                       | 199                                    |

The Scheme of Fund for Regeneration of Traditional Industries (SFURTI) is a scheme to organize traditional industries and artisans into clusters and provide them with sustainable income generation. The traditional industries covered under the scheme are from textiles, handicraft, agro processing, bamboo, honey, khadi and coir sector etc. 365 Clusters have been approved during the last three years and around Rs. 1,025 crore released benefitting 2,09,741 artisans/beneficiaries.

As  per  Prime  Minister's  Employment  Generation  Programme  (PMEGP),  the  margin money utilised, number of units set up and estimated employment generated were as follows:

| Year                       | Margin Money Utilized (Rs. in Lakh)   | Number of Units setup   | Estimated employment generated   |
|----------------------------|---------------------------------------|-------------------------|----------------------------------|
| 2019-20                    | 1,95,082.15                           | 66,653                  | 5,33,224                         |
| 2020-21                    | 2,18,880.15                           | 74,415                  | 5,95,320                         |
| 2021-22                    | 2,97,765.91                           | 1,03,219                | 8,25,752                         |
| 2022-23 (as on 30.06.2022) | 55,013.21                             | 18,000                  | 1,44,000                         |

(d) & (e): COVID-19  epidemic  has  temporarily  affected  various  sectors  including  Micro, Small  and  Medium  Enterprises  in  the  country.  Economic  activity  contracted  due  to  the  strict lockdown  measures  imposed  by  the  Government.  This  contraction  has  also  had  impact  on  the MSME sector.

As  MSMEs  are  present  in  both  formal  and  informal  sector;  data  regarding  loss  of employment  is  not  maintained  by  the  Government  of  India  in  Ministry  of  Micro,  Small  and Medium Enterprises (MSME).

- (f): The schemes implemented by M/o MSME as detailed in para  (c)  above  are  directly  or indirectly beneficial to MSMEs for employment generation.