Only 3.32 lakh MSME jobs created in last four years, finds CII survey

Prelims level : Industry Mains level : GS- III
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The number of net jobs created in the Micro, Small and Medium Enterprises (MSME) sector in the last four years stood at just 3,32,394, which is 13.9% higher than the base four years ago, according to a CII survey of more than one lakh companies.

The survey shows just three States — Maharashtra, Gujarat, and Telangana — accounted for over 50% of the jobs created in this period (2015-16 to 2018-19).

Most in micro sector

  • It also shows that 73% of the jobs were created by micro enterprises.
  • Out of the survey sample, 70,941 firms were responsible for this increase. On the whole, nearly two-thirds of the respondents witnessed an increase in hiring activity over the last four years, while 17% witnessed no change.
  • According to the survey, micro enterprises were the largest job generators, having created 2,40,713 jobs or 73% of the net jobs created in the last four years. Small enterprises, on the other hand, accounted for 23% of the net jobs created, while medium enterprises accounted for just 4%.
  • Looking at the sectoral break-up, the hospitality & tourism sector accounted for 12% of the jobs, while the textiles & apparels and metal products sectors each contributed about 8% to job creation.
  • The other large job generators were machinery parts (7%) and transport & logistics (7%). The top five sectors accounted for over 40% of the jobs, indicating a degree of sectoral concentration.
  • The concentration in terms of geographic dispersion of jobs created was also noticeable, with three States — Maharashtra (29%), Gujarat (14%) and Telangana (10%) — accounting for 54% of the jobs created in the last four years.
  • The top eight States accounted for over 80% of the jobs. The survey also found that 5,70,804 jobs are expected to be created over the next one year, which represents a 21% increase over the current employment base. The trend seen in the last four years in terms of sectoral break-up will remain largely the same.
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