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MSME & START-UP BULLETIN, VOLUME 1, ISSUE 1, AUGUST 2022

AN OVERVIEW OF

INSTITUTIONAL

SUPPORT IN THE

LIFE CYCLE OF

AN MSME

CMA Jyotsna Rajpal is a Practicing Cost Accountant based in Nagpur with 3 decades
of experience in more than 20 industries. She specialises in Systems development &
implementation. She has special interest in Music, Meditation & Organic farming.

CMA Jyotsna Rajpal

1.00. Introduction Out of this 20% comes from manufacturing & rest
Micro, Small and Medium Enterprises (MSMEs) 80% is the contribution of service sector. Presently
are recognised globally as the drivers of economic MSME sector is contributing around 48% of total
growth, employment generation, social development Indian exports which is expected to go up to 60% in
and innovation. This sector is the most apt means for next 2 years.
the encashment of the demographic dividend of India
for its all-round growth. Looking at these magical fi gures, one can say that
MSME is the back bone of the country.
In India MSME sector delivers 9000 products &

services. It has 63.34 million units contributing to 2.00. Magnificent MSME
80% of total industrial units of the country. Out of this The industries which come under the purview of
around 30% are in manufacturing sector and 70% in MSME are classifi ed on the basis of capital investment
service sector. and turnover.

It provides employment to nearly 120 million 2.01. Micro Enterprises: 99% of the total MSME
population of this country which constitutes around units are micro units. They provide all small and big
60% of total employment. In this number rural India items of our daily need. Almost all essentials like Food
has share of about 51% and urban India contributes Products, Dairy, Garments, Home furnishings, Khadi,
rest 49%. It is interesting to note that 97% of this Handicraft, Utilities, Services, etc., except direct
employment is generated from micro units. food grains are provided by these micro units. The
investment limit for these units is Rs. one crore and
MSME sector contributes towards 40% of the GDP maximum turnover cap is 5 crores. If a unit crosses this
which is targeted to increase upto 50% in next 2 years. limit, it will switch to small enterprises.

The Institute of Cost Accountants of India 23