India’s economy to attain size of USD 34.7 trillion by 2047: PHDCCI
The Indian economy is displaying robust growth post Covid pandemic despite continued global headwinds, the industry body said.
The government is hoping that the MSME sector would help to boost the economy and help in employment generation in the coming years.
The MSME sector is the backbone of the economy and it would lead the current consolidation phase of the economy, said Union finance minister Arun Jaitley while launching CriSidEx, the first sentiment index for micro and small enterprises (MSEs).
The finance minister said health of the sector is extremely vital to the economy and with a number of steps taken, there is an increased integration of the sector into the formal economy.
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“This is one sector where people not only exhibit their entrepreneurial skills, become part of large-value chains, but then also become job creators in the process,” he added. That is the reason why the bulk of the jobs in manufacturing, trading have been created in this particular sector, he said.
“Having gone through a series of very major structural reforms in the past two years, now (this) also is a phase for consolidation as far as the economy is concerned. And this phase of consolidation will also be led by the MSME sector,” the finance minister said.
CriSidEx, developed jointly by Crisil and Sidbi, is a composite index based on a diffusion index of eight parameters, and measures MSE business sentiment on a scale of 0 (extremely negative) to 200 (extremely positive).
This objective index will be of some use to individual companies but certainly it will be of much greater use as far as policymakers are concerned so that the necessary changes can also be brought in, to ensure that the government continues to perform its role as a facilitator as far as the sector is concerned, he said.
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