Why in News?

People all over the world observe International Micro, Small, and Medium Enterprises (MSME) Day or World MSME Day every year on 27th June. This day aims to highlight the significance of MSMEs and their crucial role as the backbone of the country’s economy.

An Overview of the News

• The day highlights the importance of MSMEs and their role as the backbone of the country’s economy.
• The theme of MSME Day 2023 in India is “Future-Ready MSMEs for India@100”.
• The Global Council for the Promotion of International Trade celebrates the day with the theme “Building a Stronger Future Together”.
• The Council is launching the #Brand10000MSMEs network, a platform for MSMEs across the globe to connect, learn and grow together.

History

• The United Nations (UN) designated 27th June as Micro, Small and Medium-sized Enterprises Day through a resolution passed in the UN General Assembly in April 2017.
• In May 2017, the launch of a program titled ‘Enhancing National Capacities for Unleashing Full Potentials of MSMEs in Achieving the Sustainable Development Goals (SDGs) in Developing Countries’ took place.
• The 2030 Agenda for Sustainable Development Sub-Fund of the United Nations Peace and Development Fund has funded it.

Features of MSMEs 

Here are some of the essential features of MSMEs

1. MSMEs are known to provide reasonable assistance for improved access to the domestic as well as export markets for businesses
2. MSMEs support product development, design innovation, intervention, and packaging elements of a business
3. MSMEs support the upgrading of technology, infrastructure, and the modernization of this sector as a whole
4. MSMEs provide employment opportunities and loans
5. MSMEs provide credit limits or funding support to various banks in the country

Role of MSME in Indian Economy

• They are the growth accelerators of the Indian economy, contributing about 30% of the country’s Gross Domestic Product (GDP).
• In terms of exports, they are an integral part of the supply chain and contribute about 48% of the overall exports.
• MSMEs also play an important role in employment generation, as they employ about 110 million people across the country.
• Interestingly, MSMEs are intertwined with the rural economy as well, as more than half of the MSMEs operate in rural India.

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