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Make In India in Defence

Sector Overview

The MSME sector is an important pillar of Indian economy as it contributes greatly to growth of Indian economy with a vast network of around 30 million units, creating employment of about 70 million, manufacturing more than 6000 products, contributing about 45% to manufacturing output and about 40% of exports, directly and indirectly. This sector even assumes greater importance now as the country moves towards a faster and inclusive growth agenda. Moreover, it is the MSME sector which can help realize the target of proposed National Manufacturing Policy of raising the share of manufacturing sector in GDP from 16% at present to 25% by the end of 2022.

Definition of the Sector

The sector is defined by the MSMED Act of 2006 to clearly indicate the Micro, Small and Medium enterprises. This has been defined separately for the manufacturing and Services sector as under:-

Manufacturing Sector Enterprises Investment in plant & machinery
Micro Enterprises Rs.25 lakh
Small Enterprises Rs.5 crore
Medium Enterprises Rs.10 crore
Table Table
Service Sector Enterprises Table
Micro Enterprises Rs.10 lakh
Small Enterprises Rs.2 crore
Medium Enterprises Rs.5 crore

The share of MSME products in the exports from the country during last three years is as follows:


Year Share of MSMEs  Products in the Exports
2013-14 42.42%
2014-15 44.76%
2015-16 49.86%

Features of MSME Sector

Office of the Development Commissioner, M/o Micro, Small & Medium Enterprises, has conducted 4th Census on MSMEs with reference period 2006-07. Some of the socioeconomic features of MSME sector in India are as given in Table below.

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