Consider the following statements about the Micro, Small and Medium En

Consider the following statements about the Micro, Small and Medium Enterprises (MSMEs) :

  • 1. The MSMEs comprise a dynamic sector of the Indian economy providing large employment opportunities.
  • 2. MSMEs require low capital cost and help industrialization of backward regions.
  • 3. MSMEs contribute enormously to socio-economic development.

How many of the above statements is/are correct ?

None
1
2
3
This question was previously asked in
UPSC CDS-2 – 2022
All three statements about Micro, Small and Medium Enterprises (MSMEs) are correct.
1. MSMEs are indeed a dynamic sector and are crucial for employment generation in India, providing a large number of jobs.
2. MSMEs generally require lower capital investment compared to large industries and are instrumental in promoting industrialization in backward and rural regions, contributing to balanced regional development.
3. MSMEs make significant contributions to the Indian economy in terms of GDP, exports, employment, and fostering entrepreneurship, thus contributing enormously to socio-economic development.
MSMEs are vital for employment, use lower capital, help regional industrialization, and contribute significantly to the economy.
The MSME sector is a significant contributor to India’s GDP and exports. The government provides various schemes and policies to support and promote the growth of MSMEs. The definition of MSMEs in India is based on investment in plant & machinery or equipment and annual turnover.