The Economic Survey 2023-24 tabled by Union Minister of Finance and Corporate Affairs, Ms. Nirmala Sitharaman, underscores the significant contributions and growth of India's Micro, Small, and Medium Enterprises (MSME) sector. This sector is a crucial pillar of the Indian economy, contributing 35.4% to all-India manufacturing output. The survey provides a detailed analysis of various factors driving the sector's growth and the government's initiatives aimed at enhancing productivity and efficiency.

MSME Sector Growth and Productivity

The survey reveals that the Gross Value Added (GVA) per worker in the MSME sector increased from US$ 1,652.56 to US$ 1,695.15 (Rs. 1,38,207 to Rs. 1,41,769), indicating enhanced productivity and labor efficiency. Similarly, the Gross Value of Output (GVO) per establishment rose from US$ 4,762.58 to US$ 5,540.81 (Rs. 3,98,304 to Rs. 4,63,389), showcasing significant growth in output.

Udyam Registration and Credit Access

A key highlight of the survey is the success of the Udyam Registration portal, which has facilitated the formalization of 4.69 crore MSMEs as of July 5th, 2024. This portal offers a simple, online, and free registration process based on self-declaration, making it easier for MSMEs to access formal credit channels. The survey notes significant growth in guarantees for MSMEs from FY20 to FY24, with the Union Budget 2023-24 allocating US$ 1.08 billion (Rs. 9,000 crore) to the Credit Guarantee Fund Trust. This allocation is expected to enable an additional US$ 23.91 billion (Rs. 2 lakh crore) in credit at reduced costs, providing a substantial boost to the sector.

Aatmanirbhar Bharat and PLI Schemes

The Economic Survey also emphasizes India’s vision of becoming 'Aatmanirbhar' (self-reliant) through the Production Linked Incentive (PLI) Schemes for 14 key sectors. With an outlay of US$ 23.55 billion (Rs. 1.97 lakh crore), these schemes aim to enhance manufacturing capabilities and exports. Investments exceeding US$ 15.30 billion (Rs. 1.28 lakh crore) have been reported until May 2024, leading to production/sales of US$ 129.12 billion (Rs. 10.8 lakh crore) and the creation of over 8.5 lakh direct and indirect jobs.

Boosting Exports and Sectoral Growth

The PLI schemes have significantly boosted exports, adding US$ 47.82 billion (Rs. 4 lakh crore), particularly in sectors like electronics manufacturing, pharmaceuticals, food processing, and telecom & networking products. This has not only increased India’s export capacity but also strengthened its global trade position.

Also Read : India's Real GDP Projected to Grow Between 6.5-7% in 2024-25: Economic Survey 2023-24

One District One Product (ODOP) Initiative

The survey details various initiatives to promote the One District One Product (ODOP) scheme, including the establishment of “Unity Malls” in state capitals and major tourism or financial centers to promote and sell ODOP products. The “PM-Ekta Malls” initiative aims to connect ODOP artisans with consumers, creating vibrant marketplaces for both domestic and international markets. Additionally, 'ODOP Sampark' workshops in 15 states have facilitated collaboration between the Centre and local sellers, reviving indigenous industries.

Global Visibility and G20 Showcase

The ODOP initiative was showcased at G20 events during India’s G20 Presidency, providing global visibility to artisans, sellers, and weavers. This international platform highlighted the unique products and craftsmanship from various districts across India, enhancing their market reach and opportunities for growth.

Conclusion

The Economic Survey 2023-24 provides a comprehensive analysis of the MSME sector's growth, the success of the Udyam Registration portal, and the significant impact of the PLI schemes on India’s manufacturing and export capabilities. The government's commitment to promoting the Aatmanirbhar Bharat vision through strategic initiatives and financial support is evident. By leveraging these growth drivers and addressing potential challenges, India is well-positioned to achieve sustainable economic development and global competitiveness.

The initiatives highlighted in the survey reflect a concerted effort to boost productivity, enhance formalization, and support the MSME sector. As India continues on its path to self-reliance and economic resilience, the collaborative efforts of government policies, industry stakeholders, and international partnerships will play a crucial role in shaping the country's economic future.

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