MSME sector emerges as growth engine of economy: RBI Governor Shaktikanta Das

RBI Governor Shaktikanta Das said the MSME sector has emerged as the growth engine of the economy amidst the Covid-19 pandemic.

Shaktikanta Das, RBI Governor said that the Micro, Small and Medium Enterprises (MSME) sector has emerged as the growth engine of the economy and have been showing signs of revival after the Covid-19 pandemic led degrowth in the early part of the current financial year FY2021.

Speaking at the occasion of 185th Foundation Day Celebration of Bombay Chamber of Commerce and Industry, He said, “MSME has emerged as the growth engine of the economy with a vast network of about 6.33 crore enterprises contributing 30 per cent of our nominal Gross Domestic Product (GDP) and 48 per cent to exports.”

He added that the sector has been rendered vulnerable by the pandemic necessitating concerted effected effects to combat the stress and focus on the revival of the sector.

He explained how the central bank further did crucial interventions to support the economy’s critical sector and also called for increasing digital payment and digital penetration across the country.

He said, “As digital capabilities improve and connectivity becomes omnipresent technological innovation and technology-driven revolution are poised to quickly and radically change India’s economy.”

Das also said that the digital technology has the potential to raise productivity of agriculture, manufacturing and businesses as well as improve the delivery of public services like healthcare and education.