India has a significant Micro and Small Enterprise (SMEs) sector that plays an important role in the growth of our economy, contributing around 39 per cent to the manufacturing output and 33 per cent to the exports in 2004-05.
Initially these entrepreneurs start their business as a small unit where they get an opportunity to improve their skills and abilities to start new ventures and finally they build large units producing various goods or rendering variety of services. There is a significant contribution to the exports by these MSEs.
Total export value of goods for the year 2005- 2006 is Rs.150242 crore and for the year 2006- 2007 is Rs.177600 crore. The growth rate in exports is 24.5% for the year 2006-07.
MSEs contribution to exports is $40Bn and MSMEs contribution is $50Bn for the year 2006-07.
The product wise contribution to the total exports by the this sector is as follows:
- Sporting goods – 100% contribution in total exports.
- Ready-made garments – 90% contribution in total exports.
- Leather products – 80% contribution in total exports.
- Processed foods – 65% contribution in total exports.
Cosmetics, basic chemicals, &pharmaceuticals – 55% contribution in total exports.- Plastic products – 45% contribution in total exports.
- Woolen garments, knitwear – 35% contribution in total exports.
- Engineering goods – 30% contribution in total exports.
- Marine Products – 29% contribution in total exports.
Suggested Reading:
Financial Source To MSEs In India
Contribution Of MSEs In GDP Of India
Contribution Of MSEs To Employment In India
SMBs in India Becoming More Concerned About IT Security
Development measures for MSEs in India
MSMEs-Being Major Contributors, Struggling to Survive and Sustain