Indian MSMEs And Spirit Of Enterprise

India is essentially a knowledge-based, entrepreneurship driven economy. India is the world’s third-largest Startup base but its entrepreneurial spirit is not limited to the Startup world; they represent only one aspect of it. The Indian spirit of enterprise is not yet branded and advertised but it catches the attention of the world. A good amount of research is being done by foreign researchers (some do their postdoctoral) on the business communities of India. The real performers often prefer to stay in the background but they do the heavy lifting. India’s Micro, Small and Medium Enterprises (MSMEs) are those silent performers who are carrying India’s 5 trillion dollar economy goal on their shoulders.

Any understanding of India’s growth trajectory is incomplete without an introduction to India’s MSME sector, and the spirit with which they work. There are 63.4 million Micro, Small and Medium enterprise units in India (mainly in rural and semi-urban areas) which contributes around 29% to India’s GDP and 49% to its exports. The MSME sector is called the backbone sector of the Indian economy as it provides employment to over 111 million people and produces over 8000 products, ranging from traditional to high tech precision items. In India, the MSMEs are broadly divided into two categories- Manufacturing Enterprises and Service Enterprises. Both categories have a thriving track record. The top ten states which together account for a share of 74 percent of the total MSMEs in India are- Uttar Pradesh, West Bengal, Tamil Nadu, Karnataka, Bihar, Andhra Pradesh, Gujarat, Rajasthan, and Madhya Pradesh. 

originally published by BW Businessworld Read more…