For the MSME sector, the Gross Value Added (GVA) per worker increased from Rs 1,38,207 to Rs 1,41,769 and Gross Value of Output (GVO) per establishment increased from Rs 3,98,304 to Rs 4,63,389 showing increased productivity and labour efficiency, the Economic Survey said.

It highlighted the success of the Udyam Registration portal that has received 4.69 Crore registrations as of 5 July 2024, playing an instrumental role in formalising MSMEs by providing a simple, online, and free registration process based on self-declaration.

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The Survey noted that there has been significant growth between FY20 to FY24 in the amount and number of guarantees for MSMEs with Union Budget 2023-24 allocating Rs 9,000 Crore to the Credit Guarantee Fund Trust, aiming to enable an additional Rs 2 Lakh Crore in credit with reduced costs.

According to the Survey, keeping in view India’s vision of becoming ‘Aatmanirbhar’, PLI Schemes for 14 key sectors were announced with an outlay of Rs 1.97 Lakh Crore to enhance India’s manufacturing capabilities and exports.

It stated that over Rs 1.28 Lakh Crore of investment was reported until May 2024, which has led to production/sales of Rs 10.8 Lakh Crore and employment generation (direct & indirect) of over 8.5 Lakh.

Survey stated exports boosted by Rs 4 Lakh Crore, with significant contributions from sectors such as large-scale electronics manufacturing, pharmaceuticals, food processing, and telecom & networking products.

The Economic Survey also stated that for the MSMEs, while bridging the credit gap remains a crucial element, the focus also needs to be on deregulation, enhancing physical and digital connectivity, and putting in place an export strategy that enables them to broaden their market exposure and scale up.

Licensing, Inspection, and Compliance requirements that MSMEs have to deal with, imposed particularly by sub-national governments, hold them back from growing to their potential and being job creators of substance, it noted.

Calling for deregulation as a vital policy contribution, the Survey said that revival or creation of institutional mechanisms for dialogue with states on required policy changes is essential. It added that much of the action has to happen at the level of sub-national (state and local) governments.