Lok Sabha Question No. 294 (STARRED), answered on 2025-03-20
Subject: Contribution of MSMEs in GDP and Export
Ministry: MICRO, SMALL AND MEDIUM ENTERPRISES
Asked by: Shri Lumbaram Choudhary, Smt. Kamlesh Jangde

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

## LOK SABHA STARRED QUESTION No. *294 TO BE ANSWERED ON 20.03.2025

## CONTRIBUTION OF MSMEs IN GDP AND EXPORT

## *294. SHRI LUMBA RAM CHAUDHARY:

SMT. KAMLESH JANGDE:

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

- (a) the  share  of  Micro,  Small,  and  Medium  Enterprises  (MSME)  products  in  the  total  Gross Domestic Product (GDP) of the country along with the growth recorded therein during the last ten years as compared to the period from 2004 to 2010;
- (b) the  quantum  of  MSME  products  being  exported  at  present,  State-wise,  particularly  from Chhattisgarh;
- (c) whether  the  Union  Government  has  formulated  any  policy  to  enhance  exports  of  the  said products in the future and if so, the details thereof; and
- (d) whether any scheme is being considered to increase the participation of women in MSMEs in the country and if so, the details thereof, State-wise?

## ANSWER

## MINISTER OF MICRO, SMALL AND MEDIUM ENTERPRISES (SHRI JITAN RAM MANJHI)

(a) to (d): A Statement is laid on the Table of the House.

## STATEMENT REFERRED TO IN REPLY TO PARTS (a) TO (d) OF LOK SABHA STARRED QUESTION NO. 294 TO BE ANSWERED ON 20.03.2025.

- (a): As per the  latest  information  received  from  the  National  Accounts  Division  (NAD),  National Statistical Office (NSO), Ministry of Statistics & Programme Implementation (MoSPI), NSO does not compile Gross Value Added (GVA)/ Gross value of output (GVO) for the MSME sector based on the current  definition  of  the  MSME  sector.  However,  an  approximation  has  been  made  based  on  the assumption that most of the unorganized sector enterprises fall under the MSME sector. Appropriate ratios, as per the old definition of MSME, have been applied to the organized GVA/GVO to estimate the GVA/GVO of the MSME sector for current series of GDP with base year FY 2011-12. The share of MSME GVA in all India GDP during 2014-15 to 2023-24 is as follows:

| Year    |   Share of MSME GVA in All India GDP (in %) |
|---------|---------------------------------------------|
| 2014-15 |                                       29.72 |
| 2015-16 |                                       29.48 |
| 2016-17 |                                       29.25 |
| 2017-18 |                                       29.69 |
| 2018-19 |                                       30.5  |
| 2019-20 |                                       30.48 |
| 2020-21 |                                       27.27 |
| 2021-22 |                                       29.64 |
| 2022-23 |                                       30.25 |
| 2023-24 |                                       29.6  |

As informed by NAD, MoSPI, information for 2004-10 is not available.

- (b): As per the information culled out from the Data Dissemination Portal of Directorate General of Commercial  Intelligence  and  Statistics  (DGCIS),  the  value  of  export  of  MSME  specified  products during  the  year  2023-24  was  million  US$  199,718.29.  State-Wise  data  for  Export  by  MSME  is  not maintained.
- (c): To  augment  the export  from MSME  sector,  Ministry  of  MSME  is  implementing  the International Cooperation (IC) Scheme under which financial assistance is provided on reimbursement basis  to  the  eligible  Central  /  State  Government  organizations  and  Industry  Associations  to  facilitate /participation of MSMEs in international exhibitions, fairs and buyer-seller meets held abroad and for organizing  international  conference,  seminar  and  workshops  in  India  with  the  aim  of  technology upgradation,  modernization,  joint  venture  etc.  Further,  under  the  Capacity  Building  of  First  Time Exporters  (CBFTE)  component  of  IC  Scheme,  reimbursement  is  provided  to  new  micro  &  small enterprises (MSE) exporters for costs incurred on Registration-cum-Membership Certification (RCMC) with  EPCs,  Export  Insurance  Premium  and  testing &  quality certification for exports.  These interventions  under  IC  Scheme  assist  the  exporters  in  MSME  sector  to  increase  their  access  to international markets. Ministry of MSME has established 65 Export Facilitation Centres (EFCs) across the country with an aim to provide requisite mentoring and handholding support to MSEs.

Further,  key  initiatives  to  boost  Indian  exports  include  the  provision  of  export  incentives, organization of trade promotional events, streamlining trade processes through digital platforms, and the negotiation  of  Free  Trade  Agreements  (FTAs)  to  expand  market  access.  Export  performance  is continuously monitored, with corrective actions  implemented through  Commodity  Boards  and Authorities,  Export  Promotion  Councils,  commercial  wings  of  Indian  Missions  and  other  relevant bodies.  Moreover,  the  Foreign  Trade  Policy  is  designed  to  integrate  India  more  effectively  into  the global market, improve trade competitiveness, and establish the country as a reliable and trusted trade partner.

(d): The  Government has  taken  a  number  of  initiatives  to  increase  the  participation  of  women  in MSMEs in the country, such as:

- i. Special drives for registration of women-owned MSMEs.
- ii. To  benefit  women  entrepreneurs,  the  Public  Procurement  Policy  was  amended  in  2018 mandating  Central  Ministries/Departments/Undertaking  to  procure  at  least  3%  of  their  annual procurement from women entrepreneurs.
- iii. To  support  Women  Entrepreneurs  under  Credit  Guarantee  Scheme  for  Micro  and  Small Enterprises, 10% concession is given in annual Guarantee fees; and 10% additional Guarantee coverage is given up to 90%.
- iv. To encourage entrepreneurship among women, Ministry of MSME  implements 'Skill Upgradation and Mahila Coir Yojana' under Coir Vikas Yojana, which is an exclusive training programme aimed at skill development of women artisans engaged in the Coir sector.
- v. The Ministry of MSME implements Prime Minister Employment Generation Programme, which is a major credit-linked subsidy programme aimed at generating self-employment opportunities through establishment of micro-enterprises in the non-farm sector by helping traditional artisans and  rural/urban  unemployed  youth.  Under  the  scheme,  the  subsidy  rate  for  general  category beneficiaries is 15% in urban areas and 25% in rural areas. For special category beneficiaries, including SC/ST/OBC/Minorities, Women, Ex-servicemen, Physically Handicapped, and those in NER, Hill, and Border areas, the subsidy is 25% in urban areas and 35% in rural areas.
- vi. Participation of women entrepreneurs in trade fairs under Procurement and Marketing Support Scheme is subsidized 100% vis-a-vis 80% for other entrepreneurs.
- vii. The Ministry of MSME launched the 'Yashasvini Campaign' on 27.06.2024. The objective of the  Campaign  is  to  empower  women  entrepreneurs  across  India  through  various  schemes  on formalization, access to credit capacity building and mentorship through awareness generation about these schemes.

****