Share of MSME sector in India's GDP rises to 7.20 per cent
10 Mar 2010
The share of micro and small enterprise (MSE) sector in the gross domestic product (GDP) of the country stood at 7.20 per cent in 2006-07 against 5.84 per cent in 2004-05, according to latest available figures.
Giving this information in a written reply in the Lok Sabha on Tuesday, minister of state (independent charge) for micro, small and medium enterprises (MSMEs) Dinsha Patel stated the share of micro and small enterprise (MSE) sector in the country's GDP stood at 5.84 per cent in 2004-05, 5.83 per cent in 2005-06 and 7.20 per cent in 2006-07 (latest available).
He said the micro, small and medium enterprises sector has acquired a prominent place in the growth of the economy.
This sector continued to contribute significantly to the industrial production and employment generation as also exports from the country.
Medium enterprises have been clubbed with the micro and small enterprises after the enactment of the Micro, Small and Medium Enterprise Development (MSMED) Act, 2006.
Under the Micro, Small and Medium Enterprises Development Act (MSMED), 2006, the filing of memorandum (registration) by entrepreneurs intending to establish a micro, small or medium enterprise is discretionary and not mandatory.
As per quick estimates of the fourth all-India census, the number of micro, small and medium enterprises, functioning in the country - in the registered and unregistered category are 15.52 lakh (5.94 per cent) and 245.48 lakh (94.06 per cent), respectively.