 "The Economic Survey said MSMEs face extensive compliance requirements and significant bottlenecks with access to affordable and timely funding being some of the core concerns")
Micro, small and medium enterprises (MSME) are a vital contributor to India's growth, but their share in the economic pie has stagnated over the years despite initiatives for credit access, formalisation and employment.
The MSME Ministry has a target of increasing the sector's contribution to the Gross Domestic Product (GDP) to 50 per cent by 2025. It is likely to miss the deadline, as the economic impact of Covid-19 weighs on industries. MSMEs' share in the GDP was 32.2 per cent in FY15 and declined to 30.5 per cent in FY20 (pre-pandemic level). It fell further to 27.3 per cent
