Indian MSMEs to create 2 lakh new jobs by 2025: Report

New Delhi: The Indian micro, small, and medium enterprises (MSME) sector employs about 1.2 crore people, and by 2025, the industry is expected to generate over two lakhs new jobs, a report showed on Thursday.

The new job opportunities will span across the services sectors and manufacturing sectors, both across urban and rural India, according to the report by NLB Services, a global technology and digital talent solutions provider.

Notably, many emerging industries under the MSME umbrella like e-commerce, logistics, and supply-chain are also expected to witness a surge in new employment.

“Home to 633.9 lakh enterprises, India has the strongest growing cohort of micro, small and medium enterprises, generating mass-scale employment across India, especially in tier 2 and 3 regions,” said Sachin Alug, CEO, of NLB Services.

Today, small businesses which comprise 96 percent of industrial units are the second largest employment generator in the country.

Overall the MSME ecosystem contributes to over 33 percent of the GDP, driving 62 percent of the employment on the domestic front.

“However, the average contribution of MSMEs in employment generation across other emerging economies stands at 77 percent, indicating untapped potential that can be explored in India,” Alug added.

Driven by the surge in digitisation and the post-pandemic shift in the workforce, MSMEs will witness an increased demand for roles in construction, manufacturing, transportation, supply chain, etc.

The majority of the new roles will emerge across states like Andhra Pradesh, Gujarat, Karnataka, Maharashtra, Tamil Nadu, and Telangana, said the report.

Women-led enterprises stand at 20.44 percent of micro-businesses, 5.26 percent of small businesses, and 2.77 percent of medium businesses.

Compared to male-owned MSMEs, women-led MSMEs have registered better income growth, said the report.

“Over the next five years, we expect another 20-25 percent surge in women-led MSMEs, which will further complement job creation,” it added.

Also Read: Sensex Open Flat On Thursday Amid Negative Global Cues

Leave A Reply

Your email address will not be published.