Report of 4th MSME Census on Marginal Increase of Sick MSMEs in India


A report was made by the 4th MSME Census for the first time after the change of definition of the MSME sector. For the Census purposes, an enterprise is defined as a unit with fixed premises which does not include hawkers, and road side vendors and others.

The report of the 4th MSME Census revealed that there had been a marginal increase in sickness of the Indian MSMEs from 13.98% in 2001-02 to 14.47% in 2006-07. The lack of demand and shortage of working capital were found to be the reasons for the sickness. About 39% of the registered MSMEs were closed in 2001-02 which got decreased to 21.64% in 2006-07.

The report revealed that there were 2.61 crore MSMEs in 2006-07 among which 0.15 crore were registered firms and 2.46 crore were un-registered firms. Employment was given to about 5.97 crore persons by the MSME sector including 0.95 crore persons for registered firms and 5.03 crores for un-registered firms. The reports of the MSME Census can be helpful for administrators, academicians, industrialists, planners, entrepreneurs and stakeholders who are involved in the promotion and development of MSMEs in India.

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