Role of Chamber of Commerce in MSME promotion
What do you mean by MSME sector in India and its role in Indian economy?
MSME stands for Micro, Small, and Medium Enterprises (MSMEs) that are associated with manufacturing or processing of goods and services.
Govt. of India has categorized the enterprises into 3 categories based on investment in plant and machinery or equipment & annual turnover:
1. Micro - Investment : Not more than Rs.1 crore and
Annual Turnover: not more than Rs. 5 crore
2. Small- Investment : Not more than Rs.10 crore and
Annual Turnover: not more than Rs. 50 crore
3. Medium- Investment : Not more than Rs.50 crore and
Annual Turnover: not more than Rs. 250 crore
The role of Micro, Small, and Medium Enterprises (MSMEs) in contributing to the Gross Domestic Product (GDP) is considerable. MSME is responsible for
45% to manufacturing output.
MSMEs provide about 117 million jobs which is 22-23% of the total employment in India.
Accounts for up to 45% of India's GDP
Thus, making them an essential part of the country's economic engine.
Though small-scale industries have been around since ancient times, their importance has become even more palpable with advances in technology allowing them greater access to market and customers.
By leveraging digital tools, they can engage in e-commerce activities as well as reach out to a global clientele, amplifying their impact on overall GDP growth. Additionally, they benefit from increased efficiency and lower costs associated with automation, enabling higher productivity and profitability.
How Chamber of Commerce can help MSME sector:
The Chamber of Commerce is a valuable asset for MSMEs, providing them with the opportunity to scale up their operations. By tapping into digital resources, these small businesses can expand their customer base, increase revenues, and enjoy increased efficiency and cost savings due to automation. This ultimately leads to higher productivity, profitability, and economic growth on a macro level. Moreover, the Chamber's experienced professionals bring expertise to the table that can help these entrepreneurs grow, thrive, and find success in an increasingly competitive market.
The Chamber of Commerce is an invaluable tool for MSMEs, providing them with the chance to broaden their reach and flourish in today's hyper-dynamic economic environment. By leveraging digital advancements, small businesses can enjoy wider customer engagement, increased revenues, and lower operational costs due to automation. These factors coalesce to drive productivity, profitability, and foster growth on a global scale.
Additionally, seasoned professionals associated with the Chamber can equip MSMEs with key insights and knowledge necessary to take these organizations to new heights. Therefore, by capitalizing on the expertise of the Chamber, small business owners can confidently aim to conquer the international stage.
It is therefore evident that MSMEs play an indispensable role in national economies across the world by creating employment opportunities and spurring innovation. With access to adequate resources and government support, these organizations can continue to drive prosperity and contribute significantly to GDP growth.
About the author
My name is Rohit and I'm an 8th standard student at All Boys Government School, Ranchi. I'm interested in entrepreneurship and business and I hope to start my own tech company someday. Outside of school, I enjoy playing video games and listening to music. I'm excited to be writing for Chamber India’s blog which I feel is the best Chamber of Commerce in India.