MSMEs turn more labor efficient as per a new MSME ministry report
The labour-intensive micro, small and medium enterprises (MSME) sector is becoming more efficient in terms of production versus persons employed.
According to the Annual Report 2009-10 released by the Ministry of MSMEs, the percentage rise in production in 2008-09 compared with the previous fiscal is double the percentage rise in the number of persons employed.
In 2008-09, production in the MSME sector went up 11.4 per cent to Rs 8,80,805 crore, while the number of persons employed rose 5.2 per cent to 659.35 lakhs. In the same fiscal 12.37 lakh new enterprises were added to the sector.
In terms of value, the sector accounts for 45 per cent of the manufacturing output and 40 per cent of the exports of the country. The sector manufactures over 6,000 products, ranging from traditional to high-tech items.
