Q.Explain the contribution of MSMEs to employment generation in India.
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Start your 14-day free trial to unlock the full solution →One of the strongest arguments for promoting MSMEs is their employment-generating capacity relative to the capital they require. Because MSME production processes tend to be more labour-intensive and less automated than large-scale industry, a given amount of capital invested in the MSME sector creates a considerably larger number of jobs than the same capital would in a highly mechanised large enterprise.
This matters greatly for a country like India, where labour is abundant relative to capital. MSMEs employ people across a wide skill spectrum — from unskilled workers in traditional handicrafts to trained technicians in light-engineering ancillary units — and their geographic spread into semi-urban and rural areas (including across Andhra Pradesh's districts) means the employment they create reaches areas that large industry, concentra …
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