India’s MSME sector has the potential to create up to 1 crore new jobs in the next 4-5 years by focusing on developing the enterprises in certain segments through partial substitution of imports, a report has said.
The report by Nomura Research Institute (NRI Consulting & Solutions) on the country’s micro, small and medium enterprises (MSMEs) said dedicated focus on developing MSMEs in select segments can create additional 75 lakh to 1 crore employment opportunities in the next 4-5 years through partial substitution of imports.
The manufacturing sector in India needs to shoulder the dual responsibility of accommodating the shift of labour from agriculture, and also cater to the added labour force, the report said.
As per the annual report 2017-18 of the Ministry of MSME, the sector contributed around 3.6 crore jobs (70 per cent) in the manufacturing sector. MSMEs are spread across various clusters in India.
A detailed look into the product groups manufactured in various clusters such as artificial jewellery, sports goods, scientific instruments, textile machinery, electric fans, rubber, plastic, leather & related products, among others, suggests that a dedicated focus on developing these MSMEs can create additional job opportunities, the report said.
Ashim Sharma, partner and group head at NRI Consulting & Solutions, said the manufacturing ecosystem is constantly evolving under the influence of several trends around changing consumer behaviour and technological shifts happening across the globe.
“This puts India’s domestic micro and small-scale industries into the driver’s seat to lead the employment generation. To scale-up, the MSME sector needs a market-oriented strategy based on two key areas of demand led manufacturing and advocacy marketing of the products,” Sharma said.
NRI Consulting & Solutions is a Japan-based consulting firm with a strong footprint in Asia.