‘MSMEs have played an essential role in providing employment opportunities’

MADURAI The Micro, Small and Medium Enterprises (MSMEs) have played an essential role in providing e

The Micro, Small and Medium Enterprises (MSMEs) have played an essential role in providing employment opportunities and it is the second largest employment generating sector after agriculture, said the Commissioner of GST, Madurai, S. Arokia Raj.

He was speaking at the inauguration of the Vendor Development Programme-cum-Industrial Exhibition organised by Madurai District Tiny and Small-Scale Industries Association (MADITSSIA).

He said that the MSME sector is considered the backbone of the Indian economy and contributes nearly 30% of the country’s GDP. MSMEs have driven India to new heights through requirements of low investment, flexible operations and the capacity to develop appropriate native technology.

It not only generates employment opportunities but also works hand-in-hand towards the development of the nation’s backward and rural areas. They have helped in the industrialisation of these areas with a low capital cost compared to the large industries. Around 52% of total MSMEs are in rural areas and 48% are in urban areas, he said.

He said that the introduction of Goods and Service Tax was truly a game changer for the Indian economy as it has replaced multi-layered, complex indirect tax structure with a simple, transparent and technology-driven tax regime. It has integrated India into a single, common market by breaking barriers to inter-State trade and commerce.

MADITSSIA President M.S. Sampath said that the MSME sector was reviving after the impact of COVID-19. The aim of the event is to create market linkages for effective implementation of Public Procurement Policy for MSMEs, promoting new market access initiatives, create awareness and educate MSMEs about the importance/methods of procurement through gem Portal, E-Tendering, etc. and scope for new enterprise set up, he said.