India’s MSME Sector to Generate Over 2 Lakh New Jobs by 2025India’s MSME Sector to Generate Over 2 Lakh New Jobs by 2025 According to a report released on Thursday by LB Services, a global provider of technology and digital talent solutions, India’s micro, small and medium enterprises (MSME) sector employs approximately 1.2 crore individuals and is projected to create over two lakhs new jobs by 2025. These job opportunities will emerge in both urban and rural India, spanning the service and manufacturing sectors. The report highlights that emerging industries within the MSME sector, such as e-commerce, logistics, and supply chain management, are also expected to contribute significantly to new employment. Sachin Alug, CEO of LB Services, noted that India has the fastest-growing cohort of MSMEs, which are driving employment across the nation. MSMEs constitute 96% of industrial units in India and play a crucial role as the second largest employment generator in the country. They contribute to over 33% of GDP and provide 62% of domestic employment. Despite the significant contributions of MSMEs to job creation, the report indicates that there is untapped potential in this sector. Other emerging economies witness an average MSME contribution of 77% to employment, indicating that India can explore further growth in this area. The digitalization wave and post-pandemic workforce shifts will drive increased demand for roles in construction, manufacturing, transportation, and supply chain management within MSMEs. States like Andhra Pradesh, Gujarat, Karnataka, Maharashtra, Tamil Nadu, and Telangana are expected to experience the majority of these new jobs. Women-led enterprises represent a notable portion of MSMEs, with 20.44% of micro-enterprises, 5.26% of small businesses, and 2.77% of medium-sized businesses being owned by women. The report indicates that women-led MSMEs have recorded better income growth compared to male-owned MSMEs. The report anticipates a 20-25% increase in the number of women-led MSMEs in the next five years, further supporting job creation in the sector.
New Delhi, June 27 (IANS): India’s micro, small and medium enterprises (MSME) sector employs around 1.2 crore people and by 2025, the sector is expected to generate over two lakhs new jobs, a report said on Thursday.
The new employment opportunities will cut across the service and manufacturing sectors, both in urban and rural India, according to the report by LB Services, a global provider of technology and digital talent solutions.
Notably, many emerging industries under the MSME umbrella such as e-commerce, logistics and supply chain are also expected to witness an increase in new employment opportunities.
“India is home to 633.9 million enterprises and has the fastest growing cohort of micro, small and medium enterprises, which are generating massive employment across India, especially in the second and third regions,” said Sachin Alug, CEO, NLB Services.
Today, small businesses, which constitute 96 percent of industrial units, are the second largest employment generator in the country.
Overall, the MSME ecosystem contributes to over 33 percent of GDP and provides 62 percent of domestic employment.
“However, the average contribution of MSMEs to job creation in other emerging economies stands at 77 percent, indicating an untapped potential that can be explored in India,” Alug added.
Driven by the wave of digitalization and the post-pandemic shift in the workforce, MSMEs will witness increased demand for roles in construction, manufacturing, transportation and supply chain, etc.
Most of the new roles will come up in states like Andhra Pradesh, Gujarat, Karnataka, Maharashtra, Tamil Nadu and Telangana, the report said.
Women-led enterprises represent 20.44 percent of micro-enterprises, 5.26 percent of small businesses and 2.77 percent of medium-sized businesses.
Compared to male-owned MSMEs, women-led MSMEs have recorded better income growth, the report said.
“Over the next five years, we expect another 20 to 25 percent increase in the number of women-led MSMEs, which will further complement job creation,” it added.
