(GIST OF KURUKSHETRA) Inclusive Development in Education : MARCH -2023

(GIST OF KURUKSHETRA) Inclusive Development in Education


Inclusive Development in Education


  • The contribution of the MSME sector to the overall Gross Value Added (GVA) increased from 29.3% in 2018-19 to 30.5% in 2019-20. However, it fell to 26.8% in 2020-21 due to the pandemic.
  • The MSME sector accounts for more than 90% of industrial units, 40% of total manufacturing output, and 35% of India’s exports.
  • The MSME sector is the largest employer after agriculture in rural areas and is thus crucial for socioeconomic development of the rural populace.

Challenges for MSMEs

  • MSMEs grapple with situations like low levels of technology use.
  • They have limited access to inputs and credit facilities.
  • They have an unfavourable market environment and fall outside the ambit of formal business and labour regulations.
  • Rural MSMEs witness more locational disadvantages as compared to their urban counterpart.
  • The MSME sector was severely impacted by the COVID-19-induced lockdown. They witnessed supply chain disruptions, reduced demands, loss of revenue, etc.

Measures taken by the Government

  • In order to moderate the economic impacts of the pandemic on MSMEs, the government modified the definition of MSMEs.
  • Provided financial assistance like equity infusion, and waived the global tender requirement for procurement of up to Rs 200 crore.
  • The Udyam portal was also launched. MSME registrations on Udyam Portal crossed the one crore mark on August 2022.
  • In order to transcend MSMEs to formal institutional networks and gain from the schemes and initiatives central government took various measures. For example, registration of unorganized workers on e-shram portal, SVANidhi scheme for street vendors, etc.
  • To digitally empower the sector, various initiatives like MSME Sampark, MSME Sambandh, MSME Samadhaan, Udyamimitra, etc. were launched.
  • Open Network for Digital Network will further strengthen its market.
  • As per the Economic Survey 2022-23, 57% of the total business on GeM was contributed by MSME units. Moreover, female entrepreneurs have contributed nearly 6%.
  • Some other initiatives include One District One Product, TRIFED (for onboarding Tribal artisans), Emergency Credit Line Guarantee Scheme, etc.



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Courtesy: Kurukshetra