Following a significant decline in FY21, the micro, small, and medium enterprise (MSME) sector’s contribution to India’s Gross Domestic Product (GDP) has rebounded, reaching close to 30%. In FY22, it stood at 29.2%, reflecting a recovery from 27.2% in FY21.
Government Targets:
Former MSME Minister Nitin Gadkari aimed to elevate the sector’s share in exports to 60% from 48% and generate an additional 5 crore jobs by 2025, alongside increasing its GDP share to 40%.
Manufacturing Output:
In terms of manufacturing, MSMEs accounted for 36.2% of India’s manufacturing output in FY22, maintaining a substantial presence in the sector.
Export Dynamics:
While the share of MSME-specified product exports dipped slightly, the value of MSME exports surged to $190 billion in FY22 from $143.9 billion in FY21. However, the share of exports exclusive to or reserved for MSMEs saw a decline in FY22.
