ASSOCHAM Reveals: Largest Job Creation by SMEs in India

An analysis made by ASSOCHAM revealed that the fastest recovery from global economy in terms of job creation is higher among the small and medium enterprises (SMEs) when compared to the large industries in India.

During the global recession period, about 25% job losses were reported by the SME sector. But still there has been a steady rise in job creation in SME sector. Later, almost 40% of job creation was contributed by the small business sector in India. This shows the flexibility and adaptability of quick response from the SMEs.

The contribution of SMEs was found to be 45 percent of industrial output and 40 percent of exports. More than 8,000 different products are produced for Indian and international markets by small businesses. 60 million people are given employment by SMEs. About 10 lakh jobs are provided per year by the sector.

The SME sector provides potential employment at low capital cost. According to the Fourth Census of the MSME sector, employment was given for 59.7 million people in over 26.1 million enterprises. SMEs play a significant role in the socio-economic developments of the country. Further encouragement is to be given to the SME sector in areas including auto ancillary, IT, retails, textiles and garments, food processing, pharma, agro, nanotechnology, and service and finance sectors.