According to the report on ‘Survey on Jobs Creation and Outlook in MSME Sector’ Micro,Small and Medium Enterprises(MSMEs) sector was the largest job creator amongst all the sectors in the last four years.
The sectors which created employment were (a)hospitality (b)tourism, (c)textiles and apparel (d)metal products (e)Machinery parts (f)transport and (g)logistics.Further,states which created large number of jobs were Maharashtra, Gujarat and Telangana.
Government initiatives like the 2% interest rate subvention given to MSMEs and recently implemented Trade Receivable e-Discounting System (TReDS) are expected to drive future growth in the MSME sector.
The Micro- Small and Medium Enterprises (MSMEs) are small sized entities,defined in terms of their size of investment.The MSMEs are classified in terms of investment made in plant and machineries if they are operating in the manufacturing sector and investment in equipment for service sector companies.
However,MSME(Amendment) Bill,2018 which has not been passed yet proposes a uniform classification for all MSMEs.Under the Bill, all MSMEs,whether they are manufacturing or service-providing enterprises, will be classified on the basis of their annual turnover.
TReDS is an online mechanism for facilitating the financing of trade receivables of MSMEs through multiple financiers.It also enables discounting of invoices of MSME sellers raised against large corporate, allowing them to reduce working capital needs.