By Martin Shwenk Leade
Copyright indiatimes
AgenciesThe exporting MSMEs have also seen a sharp jump from 52,849 in 2020-21 to 1,73,350 in 2024-25.
SMERA Ratings today, in its study on MSMEs, revealed that despite having to deal with an increasingly dysfunctional world of politics, economy, and exports in particular, the exporting MSMEs have registered a threefold jump from 52,849 in 2020-21 to 1,73,350 in 2024-25.The study by SMERA further revealed that the exports from MSMEs too have seen a three-fold growth, rising from INR 3.95 lakh crore in 2020 – 21 to INR 12.39 lakh crore in 2024 – 25.Sankar Chakraborti, Chairman, SMERA and MD & CEO Acuité Ratings & Research said, in a statement, “Despite the international wars showing no signs of abating, coupled with tariff war, further adding to the new geopolitical alignments, MSMEs’ bet on exports remains impressive. Though MSMEs in India lack in size, but they make up for it in numbers”. Within MSMEs, micro & small enterprises constitute 91% of exporting units. Gross Value Added by MSMEs jumped from 27.3% in 2020-21 to 29.6% in 2021-22 and 30.1% in 2022-23, highlighting its growing role in national economic output. The study also shows that micro & small enterprises’ total export value within MSME export is 60%, while medium enterprises constitute only 9%. MSMEs produce over 6,000 unique products for both the domestic and export markets.”The global supply chains were heavily impacted by wars, and right after, many industries came to a grinding halt for long periods during the COVID-19 pandemic. Despite this, MSMEs showed high resilience, increasing their share in the country’s Gross Value Added (GVA) significantly. Without these enterprises, India would lose not just a third of its GDP, but two-thirds of its employment base and nearly half its foreign exchange earnings,” added Chakraborti.Live Events Some of the areas where MSMEs play a crucial role include food processing, auto components, biotechnology, defence manufacturing, pharmaceuticals, electronics and engineering goods, FMCG, fertilisers, fisheries, handicrafts, metals and minerals, leather and rubber products, textiles and sporting goods, etc. The services spectrum is equally diverse, covering auditing & accounts, banking, aviation, personal services, construction & real estate, IT & consultancy, e-commerce, education, electricity, health services, legal, telecom, tourism, transportation, etc. Despite all this, their contribution to the global value chain is nowhere close to the potential it holds. As per the study, MSMEs’ vulnerability to achieve scale and size can be attributed to ineffectiveness in assigning cash or profits for growth, as they roll them over for working capital, which is difficult to come by. The high probability of delayed payment, as well as vulnerability to other economic impacts, leaves them with little growth capital. A few fortunate MSMEs that can gather capital are bogged down by other business expenses that drag almost all industries – high cost of land, logistics, and electricity. The other biggest hurdle is clearances. This is despite the strides made in ease of doing business, clearances across departments, tax compliance, as well as other regulations, making it difficult for most companies to expand capacities as well as geographies. There is a cost component to compliance as well, which is another burden that few small companies can bear. Add as a Reliable and Trusted News Source Add Now!
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Nominate your pick for ET MSME Awards 2025 by Oct 15….moreless
Read More News onExporting MSMEsSMERA RatingsMSME growthGeopolitical uncertaintyTariff warNominate your pick for ET MSME Awards 2025 by Oct 15….moreless
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