MSME sector contribution to GDP: The share of the 6.3-crore strong micro, small and medium enterprise (MSME) sector’s gross value added in the country’s gross domestic product (GDP) has climbed back to near 30 per cent. After declining to 27.2 per cent in FY21 from 30.5 per cent in FY20 and FY19, the share recovered to 29.2 per cent in FY22, according to the data from the MSME ministry in a statement. The share had increased from 29.25 per cent in FY17 to 29.69 per cent in FY18.
The recovery assumes significance as the government intends to increase MSMEs’ share in the GDP. Former MSME Minister Nitin Gadkari in 2020 had set a target of increasing the sector’s share in exports to 60 per cent from 48 per cent and 5 crore additional jobs apart from the jump in GDP share to 40 per cent by 2025.
As per the World Economic Outlook (WEO) database of the International Monetary Fund, India’s gross domestic product (GDP) is expected to reach $5.15 trillion by 2027 from $3.39 trillion in 2022.
Also read: MSME sector’s share in India’s GDP drops from over 30%: Govt data
In terms of manufacturing, the share of MSME manufacturing output in all India manufacturing output during 2019-20, 2020-21 and 2021-22 was 36.6 per cent, 36.9 per cent and 36.2 per cent respectively.
As per the data from the Directorate General of Commercial Intelligence and Statistics (DGCIS), the ministry noted the share of export of MSME-specified products in all India exports during the year 2020-21, 2021-22 and 2022-23 at 49.4 per cent, 45.0 per cent and 43.6 per cent respectively. The data was shared by Minister of State in MSME Ministry Bhanu Pratap Singh Verma in a written reply to a question in the Rajya Sabha earlier this month.
While the export share dropped, the value of MSME exports had increased to $190 billion in FY22 from $143.9 billion in FY21 and $154.8 billion in FY20. For the uninitiated, the share of the MSME sector in India’s total exports does not comprise MSME goods only. It has a contribution from large enterprises also, Prafulla Chandra Mishra, Statistical Advisor, Directorate General of Foreign Trade (DGFT), Department of Commerce had said at an event organised by FE Aspire in February this year.
The country’s “MSME-related export” was $189,768 million during FY22 as compared to $143,823 million during FY21, registering a positive growth of 31.9 per cent, according to the data shared by Mishra.
However, for exports of items reserved for manufacturing by MSMEs or exclusive to MSMEs, the share in India’s total exports dropped from 9.1 per cent amounting to $26.4 million in FY21 and to 7.7 per cent in FY22 amounting to $32.6 million, he said.
