India has over 6.5Cr MSMEs, of which almost 99% are micro-enterprises with a turnover of less than 5Cr. These MSMEs employ over 11Cr people accounting for almost a quarter of the workforce. They also account for ~48% of exports, although this is likely overstated since the calculation is based on sectors that were earlier reserved for small scale but have now been de-reserved.
MSMEs have the potential to make an even more meaningful contribution to the Indian economy, particularly on the export front, which is essential for accelerated economic growth. However, a few key structural barriers prevent them from realizing their full potential. FED along with NITI Aayog is undertaking a structured study to fully understand the barriers to MSMEs realizing their export potential.
The study will lead to the creation of a comprehensive report covering the following:
• Current MSME landscape, particularly from an exports perspective
• High potential opportunities for MSMEs for exports with a focus on Micro and Small
• Key barriers to exports for MSMEs
• Policy landscape across central and state governments
• Current support ecosystem beyond government for MSMEs
• Policy recommendations for the government to help propel MSME exports
• Recommendations for the broader ecosystem for MSME exports proportion