write short notes on Industrial Policy for MSMEs in India.
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Answer:
India’s Micro, Small, and Medium Enterprises (MSMEs) base is the largest in the world after China.
The sector provides a wide range of services and is engaged in the manufacturing of over 6,000 products – ranging from traditional to hi-tech items.
Given the government of India’s ‘Make in India’ push, along with a push to attract greater FDI, the Indian MSMEs sector is poised for rapid growth and integration with major global value chains.
As per the official estimates, there are about 63.05 million micro industries, 0.33 million small, and about 5,000 medium enterprises in the country.
The state of Uttar Pradesh has the largest number of estimated MSMEs with a share of 14.20 percent of the total MSMEs in the country. West Bengal comes as close second with a share of 14 percent, followed by Tamil Nadu and Maharashtra at eight percent.
The spread of COVID-19 in India and consequent lockdown has stressed national economic growth and put financial pressure on businesses. In light of this, the government has announced changes to the way it will categorize MSMEs.