The Size Structure of India’s Enterprises: Not Just the Middle is Missing

Santosh Mehrotra and Tuhinsubhra Giri

Centre for Informal Sector and Labour Studies, School of Social Sciences, Jawaharlal Nehru University

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Abstract

Most international development economics and industrial organization literature emphasises the importance of SMEs (small and medium enterprises) as important to output, but especially to employment generation. Countries have different definitions for SMEs. In India the MSMEs (micro, small and medium enterprises) are defined in terms of investment in plant and machinery or equipment. The MSME Ministry (Annual Report, Government of India 2017–18) stated that the sector accounts for 45% of the manufacturing output and 40% of the total exports of the country; also that MSMEs accounted for 30.74% of GDP in 2014–15. Not surprising, MSMEs are considered a driving force of the economy.

Suggested Citation:

Mehrotra, Santosh and Tuhinsubhra Giri.2019. “The Size Structure of India’s Enterprises: Not Just the Middle is Missing.” Centre for Sustainable Employment Working Paper#25, Azim Premji University, Bangalore.