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MSME Contributes Significantly In India's GDP: Padmanabhan Jaishankar

Jaishankar cited an International Monetary Fund (IMF) report and said, "Allocating one per cent of the GDP to public investment could also create approximately 7 million jobs directly and 20 million jobs indirectly worldwide."

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Micro, small and medium enterprises (MSME) are the pillars of the Indian economy because of its significant contribution to gross domestic product (GDP), export and employment generation, said Managing Director (MD) of IIFCL, Padmanabhan Raja Jaishankar. 

Jaishankar cited data and said, "The MSME sector contributes about 29 per cent towards the GDP, national and international trade alone. The sector also contributes to the economic and social development of the country by fostering entrepreneurship and developing large employment opportunities."

While talking about the infra, construction industry and the role of MSMEs, Jaishankar said that the infra industry provides ample entrepreneur and innovative opportunities which further deepen the role. Spending 1 per cent of GDP on infrastructure is likely to boost India's GDP by about 2 per cent, Jaishankar mentioned. 



Jaishankar cited an International Monetary Fund (IMF) report and said, "Allocating one per cent of the GDP to public investment could also create approximately 7 million jobs directly and 20 million jobs indirectly worldwide."

Talking about the infrastructure sector, Jaishankar said, "India's infrastructure credit penetration to India's GDP was about 10.9 per cent as of March 2021. So far, the banks have been key financers for the sector, however, the share of the banks have been declined from 60 per cent (five years ago) to 46 per cent and that share has been captured by the NBFC segment."

During his special address, Jaishankar spoke on the topic 'Growth of Infra and its Impact on MSME sector’ at the BW Emerging Conclave and Awards 2022 organised by BW Businessworld on January 21.  


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msme india gdp Padmanabhan Jaishankar