Indian MSMEs can create 1 cr jobs in 5 yrs: NRI Consulting

11 Apr '19

2 min read

India is an attractive consumption-oriented market with a growing middle class and rising disposable income despite the recent sluggishness in demand, according to NRI Consulting, a Nomura Holdings affiliate. Micro, small and medium enterprises (MSMEs), if nurtured well, can bridge the employment gap and create a crore jobs in the next four to five years, it said.

Only 15 per cent of what is consumed in India is, however, made by the domestic manufacturing industry, limiting the country’s ability to create employment opportunities, the Japan-based firm said in a note on Indian market.

The employment issue can be addressed by following a market-oriented approach for MSMEs, wherein the organised private sector participants invest in capacity building of the MSMEs against a valid for-profit business case with long term benefits, a top Indian business newspaper reported citing the company note.

The MSME sector remained the highest job creator with the sector contributing about 3.6 crore jobs, which is about 70 per cent in the manufacturing sector in 2017-18, according to official data.

To scale up, the MSME sector needs a market-oriented strategy through business development services which is inclusive and builds on a consensus on the challenges, goal and broad policy direction among the key stakeholders, the consulting firm added. (DS)

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