MSMEs: The Powerhouse Behind India's Economic Surge

Jaipur, Rajasthan: The Micro, Small, and Medium Enterprises (MSME) sector in India is poised to play a pivotal role in the country's economy by 2025, according to CA Ashok Holani, Director of Holani Consultants Pvt Ltd. Speaking at a conference, Holani underscored the sector's potential to drive economic growth, positioning India as the fourth-largest global economy by the decade's midpoint.

Currently contributing around 29% to India's GDP and employing nearly 60% of the workforce, the MSME sector is crucial to the nation's economic development. Holani pointed out the significant growth prospects within industries such as electric vehicles, agritech, and renewable energy. Policy support like NITI Aayog's SME 4.0 Competence Centers will further boost technological adoption and competitiveness.

Commercial credit exposure has surged to ₹35.2 lakh crore, marking a 13% annual rise, signaling robust momentum in the MSME sector. Projecting a 2.5% CAGR in MSMEs, Holani anticipates these businesses will be central to steering India towards a $4 trillion economy, thus signifying their indispensable role in India's growth narrative.

(With inputs from agencies.)