Confederation of Indian Industry

“Survey on Job Creation and Outlook in MSME Sector”

Question 1. Analyse the survey results related to job creation in MSME Sector.

Jobs creation saw a growth of 13.9 per cent in the Micro, Small and Medium
Enterprises (MSME) sector over the last 4 years, a survey showed. The micro firms
created the largest number of jobs and are expected to continue with the trend in the
coming 3 years as well, the CII survey which the industry body claims to be its largest
in recent times, also noted.

According to the survey among over 1 lakh MSMEs, there has been a 13.9 percent
increase net jobs additions (or 3,32,394 new jobs created), over the past four years,
which is a 3.3 percent increase per annum in these four years.

During the period Maharashtra, Gujarat and Telangana were the largest job
generators, while Maharashtra, Tamil Nadu and Telangana were the top three states
in case of exporters.

“The survey establishes a growth of 3.3 per cent (compounded growth rate) per
annum. When mapped to the macro level data sourced from Labour Bureau, this
works out to an estimated additional job creation to the tune of 13.5 to 14.9 million
per annum”, said Rakesh Bharti Mittal, President, CII.
The top employment generating sectors include hospitality & tourism, textiles &
apparels, metal products, machinery parts and transport & logistics.

Question 2. What is your opinion on government initiatives in this sector?

The government initiatives including 2 per cent interest rate subvention to all MSMEs
and Trade Receivable e-Discounting System (TReDS) may drive growth in future,
generating more jobs.
The total workforce stand at nearly 450 million as of FY18 (projected) according to
the labour bureau data.
However, the CII survey highlights the need for greater hand-holding of the
MSMEs who are still to take full advantage of these Government initiatives," said
CII Director General Chandrajit Banerjee.