Micro, small and medium enterprises (MSMEs) stand to gain significantly from the online employment exchange launched by the government recently, following up on initiatives such as ‘Make in India’ and Skill India that have high employment-generation potential.
CRISIL believes the exchange will help MSMEs identify a manufacturing workforce based on the nature, size and geographical distribution. More importantly, they can search and hire skilled employees without incurring hiring and training costs.
An analysis of about 5,500 micro, small and medium enterprises (MSMEs) which are engaged in manufacturing activity and which approached CRISIL for renewal rating between 2009 and 2015 shows that employment generated by these units grew at 73 per cent over these seven years.
In 2009, the MSMEs provided employment to about 88 employees per unit. By 2015, this had climbed to 153 employees per unit. The top five states contributing to growth in employment generation are Kerala, Karnataka, Telangana, Tamil Nadu and Uttar Pradesh.
Note: This fortnightly tracker presents to our readers insights on MSMEs, a key element of the Indian economy. CRISIL has rated over 75,000 MSMEs in India. CRISIL and Assocham released the joint report, 'Financial Inclusion for Entrepreneurship', during the event SME Excellence Award - 2015 organised by Assocham on December 10 in New Delhi.
