Jobs creation saw a growth of 13.9 per cent in the Micro, Small and Medium Enterprises (MSME) sector over the last 4 years, a survey showed. The micro firms created the largest number of jobs and are expected to continue with the trend in the coming 3 years as well, the CII survey which the industry body claims to be its largest in recent times, also noted.
According to the urvey among over 1 lakh MSMEs, there has been a 13.9 percent increase net jobs additions (or 3,32,394 new jobs created), over the past four years, which is a 3.3 percent increase per annum in these four years.
During the period Maharashtra, Gujarat and Telangana were the largest job generators, while Maharashtra, Tamil Nadu and Telangana were the top three states in case of exporters.
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“The survey establishes a growth of 3.3 per cent (compounded growth rate) per annum. When mapped to the macro level data sourced from Labour Bureau, this works out to an estimated additional job creation to the tune of 13.5 to 14.9 million per annum”, said Rakesh Bharti Mittal, President, CII.
The top employment generating sectors include hospitality & tourism, textiles & apparels, metal products, machinery parts and transport & logistics.
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The government initiatives including 2 per cent interest rate subvention to all MSMEs and Trade Receivable e-Discounting System (TReDS) may drive growth in future, generating more jobs.
The total workforce stand at nearly 450 million as of FY18 (projected) according to the labour bureau data.
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Source: Financial Express