Employment in the micro and small enterprise (MSE) sector grew at an estimated 4.11% per annum during 1997 to 2005 as against a 1.04% decline in the organised sector, according to estimates made by the Director General of Employment & Training.
While employment in the organised sector dropped to 26.4 million in 2004 from 28.2 million in 1998, the micro and small enterprise sector registered a growth of 4.4% during the 10th Plan period (2002-07). This is against the 1.8% growth in the agriculture sector during the same time.
?The MSE sector employs 67 million people in India and is the largest employment generating sector after agriculture. Hence, the sector provides one of the most viable avenues for absorbing the large surplus population engaged in the agriculture sector,? said the document on employment potential of micro, small and medium enterprises.
The above findings come in the light of increased liberalisation and globalisation, establishing the high employment generation potential of this sector and its ability to withstand the effects of the above phenomenon.
Further, the micro and small enterprise sector has been registering a higher growth rate than the overall industrial sector in the past few years.
The sector grew at 13% in 2006-07 as against 11.5% growth of the overall industrial sector. The sector accounts for an estimated 39% of the manufacturing output and 33% of the total exports of the country. The number of enterprises in the micro and small enterprise sector has increased to 12 million in 2006-07 from 0.4 million in 1971-72.
