Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy. MSMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural & backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of national income and wealth. MSMEs are complementary to large industries as ancillary units and this sector contributes enormously to the socio-economic development of the country.
India has got tremendous scope for investors and entrepreneurs as far as business opportunities are concerned. Especially India has always been in the limelight in terms SME business. The SME business opportunity in India can be seen in possibly every sector – financial services, telecom, education, automobiles, media, food, real estate and so on.
Small and medium sized enterprises play a central role in the Indian economy. They are a major source of entrepreneurial skills, innovation and employment. SME businesses are the biggest contributor to the economy of any country and the same goes with Indian economy. In fact, SME is one of the most crucial sectors of Indian economy as far as the number of employments generated from this segment. As more than 65% of Indian population lives in rural and semi-rural areas, small business becomes a major source of income for many residing in these areas. After agriculture, small business in India is the second largest employer of human resources.
The SME business market of India is large and bubbling with newer opportunities. Increased purchasing power and consumerism is what drives the business scenario in India. Thus, there is an opportunity for competitive advantage that can benefit investors and entrepreneurs to a large extent. An investment in any best small business opportunity promises lucrative returns and success in less time.
Reasons behind growth in SME business
There are various reasons due to which the small scale business in India has witnessed a spurt of growth. Some of these factors are:
• High contribution to domestic production
• Low investment requirements
• Significant export earnings
• Capacities to develop appropriate indigenous technology
• Operational flexibility
• Contribution towards defense production
• Technology – oriented industries
• Import substitution
• Location wise mobility
• Low intensive imports
• Competitiveness in the domestic market
• Competitiveness in the export markets
“Growth and Performance of Micro, Small and Medium Enterprises in India”
Over last 5 decades MSME sector emerged as extremely effervescent and vigorous segment of Indian economy. MSME plays dual role of providing employment and industrialization of rural/backward areas, thereby reducing regional imbalance and equitable distribution of national income. MSME’s are harmonizing to large industries as supplementary units, which adds to socio economic development. It consists of 36 million units, providing employment over 80 million persons with 8% contribution to GDP.
Leading Industries of MSME Sector:
Ø Retail trade (except of motor vehicle & motor cycles) and Repairs of personal and household goods – 39.85%
Ø Manufacturing of wearing apparels- 8.75%
Ø Manufacturers of foods and beverages-6.94%
Ø Other services activities -6.2%, other business activities – 3.77%
Ø Hotels and restaurants-3.64%
Ø Sales maintenance of motor vehicles and cycles – 3.57%
Ø Furniture manufacturing -3.21%, Textile -2.33%
Ø Fabricated metals except machinery and equipment-2.33% and others 19.4%. Three sub sectors demonstrates promising picture: food processing- high potential because of agro linkage, textiles-innovation, and electronics- linkage with ITES
SMEs employ around 40% of India’s workforce, which is an estimated 80 million people, who are given an opportunity for livelihood and employment via low-skilled jobs. Around 1.3 million SMEs contribute 45% to India’s manufacturing output and 40% of India’s total export. In a way, they form the backbone of the Indian economy. At 48 million, India has the second largest number of SMEs in the world, edging close to China which has around 50 million SMEs.
There are around 6000 products manufactured by 31.7% SMEs while the remaining 68.2% are engaged in delivering various services. This sector, if extended the right support, has the potential to spread industrial growth throughout the country.
MSME- an abbreviation of Micro, Small & Medium enterprises- is the pillar of economic growth in many developed, and developing countries in the world. Often rightly termed as “the engine of growth” for India, MSME has played a prominent role in the development of the country in terms of creating employment opportunities-MSME has employed more than 50 million people, scaling manufacturing capabilities, curtailing regional disparities, balancing the distribution of wealth, and contributing to the GDP-MSME sector forms 8% of GDP.
The advantage of this sector is it requires less investment, thus creating employment on a large scale, and reducing the employment and underemployment problems. Moreover, this sector has survived almost all threats emerging out of still completion from both domestic and international market.
Share of MSME in Manufacturing, Exports and Employment sectors in India:
Sector Percentage (%) share
1 Manufacturing 45%
2 Exports 40%
3 Employment 69%
The contribution of MSME to other sectors has been immensely instrumental. It is the biggest employer after agriculture sector, despite the fact that agriculture sector’s contribution to GDP is less than MSME. While it contributes about 45% to manufacturing sector, and perhaps 40% to Exports, it forms the highest share of Employment sector in India, contributing around 69% to it.
Here are few Projects for Startup:
PISTON FOR INTERNAL COMBUSTION ENGINES
NON GLAZED CERAMIC TILES
ABRASIVE & FLINT PAPER
MATCHBOX
STRAW BOARD SLATES
CEMENT ROOFING TILES
DISPOSABLE PLASTIC CUPS, PLATES AND GLASSES
DISPOSABLE PLATES FROM BANANA LEAVES
NATURAL COLOURS
INSULATOR
BIOGAS PRODUCTION
CHARCOAL FROM COCONUT SHELL
ACETYLENE GAS
CHOCOLATE
GYPSUM PLASTER BOARDS
PAPER BAGS FOR WHITE CEMENT
RUBBER GASKETS
CRUSHED STONE
BITUMEN
BANANA POWDER
COPPER POWDER BY ELECTROLYTIC PROCESS
AUTO LEAF SPRINGS
BRICKS FROM FLY ASH
WOODEN TOOTHPICK
BROOM STICK PROCESSING PLANT
ARTIFICIAL MARBLE TILES
SAND LIME BRICKS MANUFACTURING
RAZOR BLADE
API TUBE
WOODEN DOORS AND FRAMES
ENAMELED COPPER WIRE
ADMIXTURES FOR CONCRETE
TUBE MAKING FOR UMBRELLA
PAPER NAPKINS, TOILET ROLL & FACIAL PAPER FROM TISSUE PAPER ROLLS
SOLAR PANEL
E-WASTE RECYCLING PLANT
LED LIGHT ASSEMBLING
BISCUIT MAKING PLANT
BREAD MAKING PLANT
BAKERY INDUSTRY
SANITARY NAPKIN & BABY DIAPERS
ELECTRIC MOTORS
MOSQUITO REPELLENT LIQUIDATOR
MACARONI, VERMICELLI, NOODLES AND INSTANT NOODLES WITH TASTEMAKER
UPVC PROFILES FOR DOORS AND WINDOWS
CPVC
REF : https://www.linkedin.com/pulse/list-50-selected-projects-micro-small-medium-msme-best-ajay-kr-gupta
