INTERNATIONAL MSMES DAY

• International MSME Day is observed every year on 27th June all over the world to highlight the significance of MSMEs and how they play a crucial role in being the backbone of the country’s economy.
• Earlier, Ministry for Micro, Small and Medium Enterprises has launched the MSME (Micro, Small and Medium Enterprises) Sustainable (ZED-Zero Defect Zero Effect) Certification Scheme.
• The United Nations (UN) designated 27th June as Micro, Small and Medium-sized Enterprises Day through a resolution passed in the UN General Assembly in April 2017.
• In May 2017, a program titled ‘Enhancing National Capacities for Unleashing Full Potentials of MSMEs in Achieving the Sustainable Development Goals (SDGs) in Developing Countries was launched.
• It has been funded by the 2030 Agenda for Sustainable Development Sub-Fund of the United Nations Peace and Development Fund.

Theme for 2022:

• MSMEs for Sustainable Development.
• The theme mainly highlights that for the socio-economic development of a country Micro-Small and Medium-Sized Enterprises is a necessary component.
• World MSME Day 2022 recognizes the potential of MSMEs and their role in strengthening the economies globally.
• It also aims to raise public awareness regarding the contribution of MSMEs to global economic growth and sustainable development.

Significance:

• As per the United Nations, the formal and informal MSMEs account for 70 % of the total employment and 50 % of the Gross Domestic Product (GDP).
• Moreover, MSMEs make up 90 % of all the firms. With such a significant contribution to the country’s economy, MSMEs are essential for the job creation, innovation and productivity growth.
• However, despite being a key player in generating jobs, MSMEs worldwide face challenges in working conditions, productivity, and informality apart from the lack of support from the governments and administrations.
• World MSME Day is celebrated to unlock the potential of such enterprises and also to utilize it for bolstering the global economy.

MSME

• Micro-Small and Medium-Sized Enterprises are the organizations that do not usually employ more than 250 employees, however, are responsible for creating more than two-thirds of all jobs globally.
• They are the growth accelerators of the Indian economy, contributing about 30% of the country’s Gross Domestic Product (GDP).
• In terms of exports, they are an integral part of the supply chain and contribute about 48% of the overall exports.
• MSMEs also play an important role in employment generation, as they employ about 110 million people across the country.
• Interestingly, MSMEs are intertwined with the rural economy as well, as more than half of the MSMEs operate in rural India.

SOURCE: THE HINDU,THE ECONOMIC TIMES,MINT