IN SHORT
- MSME Day is observed annually on June 27th since 2017 to recognize the vital role of Micro, Small, and Medium Enterprises (MSMEs) in global economies.
- MSMEs constitute 90% of businesses worldwide, contributing significantly to GDP and employing 60-70% of the workforce.
- The theme for MSME Day 2024 is “MSMEs and the SDG,” focusing on aligning MSME activities with Sustainable Development Goals for inclusive growth.
- In India, MSMEs are defined under the MSMED Act 2006, with categories based on investment in machinery and annual turnover.
- MSMEs in India contribute substantially to GDP, manufacturing output, and exports, playing a crucial role in economic development.
- The observance of MSME Day underscores the importance of supporting and nurturing MSMEs for sustainable economic growth and job creation globally.
Since 2017, June 27th has been observed globally as Micro, Small, and Medium Enterprise (MSME) Day, highlighting the pivotal role of this sector in economic growth and employment generation.
The History of MSME Day
June 27th was designated as MSME Day by the UN General Assembly in a resolution that was approved on April 6, 2017. It was later that year when the first observance was held.
The importance of MSMEs
MSMEs make up an important portion of enterprises globally and play a major role in job creation and economic growth. The UN estimates that they make up 90% of all enterprises worldwide, employing 60–70% of the labor force and making up 50% of GDP.
MSME Day 2024 Theme
The subject of MSME Day 2024 is “MSMEs and the SDG,” which is in line with the 2030 Sustainable Development Goals (SDGs) established by the UN to attain global sustainability and prosperity.
In India, the term “MSME” is defined as
The Micro, Small, and Medium Enterprises Development (MSMED) Act, 2006 defines the MSME sector in India. The division between the manufacturing and service sectors ended in 2020. These days, the yearly revenue and plant and machinery investment are used to classify MSME’s.
Grouping of Businesses
- Micro enterprises: up to Rs 1 crore in investments and up to Rs 5 crore in revenue.
- Small businesses: revenue of Rs 5 crore to Rs 50 crore; investment range of Rs 1 crore to Rs 10 crore.
- Medium-Sized Businesses: Revenue between Rs. 50 crore and Rs. 250 crore; Investment range between Rs. 10 crore and Rs. 50 crore.
The Indian Economy and MSMEs
MSMEs play a crucial role in India’s economy, making significant contributions to a number of metrics, including:
- Gross Value Addition: In FY 2021–2022, MSMEs made for 29.2% of India’s GDP.
- 36.2% of the manufacturing sector makes up of their manufacturing output.
- MSMEs make up 43.6% of India’s export industry.
On this MSME Day, we should acknowledge and celebrate the critical role MSMEs play in promoting economic growth, job creation, and sustainable development. Their creative thinking and persistence are essential for attaining reasonable and long-term economic success.
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