The manufacturing sector and micro, small and medium enterprises (MSME) are spearheading economic growth in the country after the outbreak of Covid-19 while many contact-intensive services sub-sectors remain severely affected by the crisis, RBI Governor Shaktikanta Das said as reported by ANI .
However, the recent government initiatives under AatmaNirbhar Bharat Abhiyaan and Union Budget 2021-22 towards developing a vibrant manufacturing sector and infrastructure acknowledges strong linkages they have with rest of the sectors, he said in his keynote address at the Bombay Chamber of Commerce and Industry.
Das said the Production Linked Incentive (PLI) Scheme aims to make India an integral part of the global value chain.
“This along with reforms in labour market can go a long way in propelling growth to an elevated trajectory for the manufacturing sector and reap its employment potential. “At the same time, MSME sector has emerged as the growth engine of economy with a vast network of 6.33 crore enterprises contributing 30 per cent to nominal GDP and around 48 per cent to exports.
The sector employs about 11 crore people, second only to agriculture. Das said the sector was rendered especially vulnerable by the pandemic, necessitating concerted efforts to combat the stress and focus on revival of the sector.