The Size Structure of India’s Enterprises: Not Just the Middle is Missing

Author
Tuhinsubhra Giri, Santosh Mehrotra
Content Type
Working Paper
Institution
Centre for Sustainable Employment, Azim Premji University
Abstract
Most international development economics and industrial organization literature emphasises the importance of SMEs (small and medium enterprises) as important to output, but especially to employment generation. Countries have different definitions for SMEs. In India the MSMEs (micro, small and medium enterprises) are defined in terms of investment in plant and machinery or equipment. The MSME Ministry (Annual Report, Government of India 2017–18) stated that the sector accounts for 45% of the manufacturing output and 40% of the total exports of the country; also that MSMEs accounted for 30.74% of GDP in 2014– 15. Not surprising, MSMEs are considered a driving force of the economy.
Topic
Economics, Labor Issues, Employment, Manufacturing, Economic Development
Political Geography
India