Celebrating National Small Industry Day: The Backbone of India's Economic Growth

As of May 2024, 7,01,053 small enterprises were registered on the Udyam portal in India. However, many small businesses remain unregistered, contributing to a larger ecosystem of micro, small, and medium enterprises (MSMEs) that play a crucial role in the nation's economic landscape.

Key Statistics on MSMEs in India

Micro-Enterprises

• Over 39 million registered on the Udyam portal, accounting for 97% of the MSME sector.

Small Enterprises

• 1.5% of MSMEs registered on the Udyam portal as of March 2024.

Medium Enterprises

• 0.8% of MSMEs registered on the Udyam portal as of March 2024.

Proprietary Ownership

• 608.41 lakh MSMEs are proprietary concerns.

Gender Distribution

• 79.56% of micro-businesses, 94.74% of small companies, and 97.63% of medium businesses are male-owned.

Urban vs Rural

• 324.9 lakh businesses are in rural areas, and 309 lakhs are in urban areas.

India observes National Small Industry Day every year on August 30 to acknowledge small-scale industries (SSIs) critical role in driving the country’s economic growth. These industries are not only engines of innovation but also key contributors to employment generation and exports, making them the backbone of India’s economy.

The observance of this day dates back to August 30, 2001, following the government’s decision to promote small industries through various initiatives. A significant moment in the history of SSIs, this day has since become a milestone in recognizing the sector's contributions.

The Role of MSMEs in India's Economy

MSMEs complement large industries, providing a diverse range of products and services that cater to both domestic and global markets. The Ministry of Micro, Small and Medium Enterprises highlights the sector's contributions as follows:

• 30.1% share of Gross Value Added (GVA) in India’s GDP.
• 45.79% share in all India exports.
• Growth in Udyam registrations to 4.91 crore with 20.17 crore jobs reported.
• 16.19 lakh registered Vishwakarma applications as of August 23, 2024.
• 22,050 units set up under the PMEGP scheme in FY24.
• Public procurement worth Rs 82,431 crore from micro and small units during FY24.

As we celebrate National Small Industry Day 2024, it's important to recognize and honor the enduring contributions of MSMEs to the nation’s progress. Their role in fostering inclusive industrial growth and meeting market demands remains pivotal to India's economic success.

Support and Growth of SSIs: The growth of SSIs in India is supported by a robust ecosystem that includes government agencies like the Small Industries Development Organisation (SIDO), financial institutions such as SIDBI and NABARD, and various development corporations. The Ministry of MSMEs plays a pivotal role in crafting policies that foster innovation and growth within the sector.

Conclusion: As we celebrate National Small Industry Day, it’s essential to acknowledge the significant contributions of small-scale industries to India’s economy. By supporting local businesses, we not only foster economic growth but also help preserve cultural heritage and create job opportunities across the country. Let’s continue to support and promote these enterprises as they lay the foundation for a prosperous and self-reliant India.

#NationalSmallIndustryDay #SmallScaleIndustries #VocalForLocal #MSMEs #Entrepreneurship #IndiaGrowthStory

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