Stunted Growth of Employment in MSME

ABSTRACT

The MSMEs in India constitute roughly 98% as micro enterprises and hardly 1% as medium enterprises. During COVID, it was observed that the MSMEs in India were in financial distressand the MSMEs roughly around 45lacs linked to the bank were given working capital up to Rs3 lac crores. But some of them could not extended their financial assistance as they must have not been seriously affected. It is on record that roughly 60 lacs MSMEs have been closed down because of the non-availability of financial assistance. Which they needed after the reopening started. The unemployment rate for the semi-skilled workers in the age group of 18 to 25 is very-very alarming. Unless there is a proper main streaming of the MSMEs, the struggle of MSMEs will appears to be continuing for long. Of late, the government has revised the policy of special economic zones. Which were expected to contribute towards export. But they couldnot enhance the SEZ in any state where they are located can contribute in the domestic production. The Government is facing difficulty in deciding a policy by which the global supply chain could be strengthen and the companies leaving china could also be attracted in India. The paper has pointed out that the manufacturing in India is not so healthy because of complication in labour laws, cost reducing logistics and the hassle full environment in customs.In case these issue are tackled on piecemeal basis the result cannot be so cherish able. But in case the states like Rajasthan and Chhattisgarh, they developed their own policy and indulge in appropriate reforms of labour. The result can be favourable and the issue of employment will be taken as solved. © 2022