The Indian micro, small, and medium enterprises (MSME) sector, employing approximately 12 million people, is set to generate over 200,000 new jobs by 2025, according to a report released on Thursday by NLB Services, a global technology and digital talent solutions provider.
The report indicates that these new job opportunities will span both the services and manufacturing sectors, impacting urban and rural areas across India.
Emerging industries within the MSME sector, such as e-commerce, logistics, and supply-chain management, are expected to contribute significantly to this job growth.
"Home to 63.39 million enterprises, India has the fastest-growing cohort of MSMEs, creating large-scale employment across the country, particularly in Tier 2 and 3 regions," said Sachin Alug, CEO of NLB Services.
Small businesses, comprising 96% of industrial units, are the second-largest employment generator in India. The MSME ecosystem currently contributes over 33% to India's GDP and accounts for 62% of domestic employment.
However, Alug noted that the average contribution of MSMEs to employment in other emerging economies stands at 77%, highlighting untapped potential in India.
The report anticipates an increased demand for roles in construction, manufacturing, transportation, and supply-chain management, driven by digitization and the post-pandemic workforce shift.
The majority of these new roles are expected to emerge in Andhra Pradesh, Gujarat, Karnataka, Maharashtra, Tamil Nadu, and Telangana.
Women-led enterprises make up 20.44% of micro-businesses, 5.26% of small businesses, and 2.77% of medium businesses in India. The report noted that women-led MSMEs have shown better income growth compared to their male counterparts.
"Over the next five years, we anticipate a 20–25% surge in women-led MSMEs, which will further bolster job creation," the report concluded.
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