MSMEs: Engines to achieve Sustainable Development Goals

The document positions India's MSME sector as a critical engine for inclusive and green growth, noting its role in employing 60 million people and contributing 45% of manufacturing output. It highlights significant barriers to growth, including a severe skill gap where only 2% of workers are formally skilled and limited access to institutional finance. While the Union Budget 2018 provided tax cuts and credit support, the brief argues that there is insufficient focus on 'greening' MSMEs to meet climate targets, suggesting a need for targeted investment in sectors like decentralized renewable energy and waste management.

• India faces a critical employment crisis and social inequality that threatens the sustainability of its economic growth, with an estimated need to create 15 million new jobs annually for the next 15 years.
• The MSME sector is a primary driver of the Indian economy, accounting for 45% of manufacturing output, 40% of exports, and providing employment to approximately 60 million people, primarily in rural areas.
• Significant barriers hinder MSME innovation and growth, specifically a lack of skilled labor—with only 2% of Indian workers formally skilled—and limited access to technology and market information for over 75% of innovative small firms.
• The Indian government's revised definition of MSMEs based on annual turnover is broader than global standards used by the IFC and European Commission, potentially overshadowing the specific needs of micro-enterprises.
• MSMEs contribute to specific SDGs by providing local value addition and livelihood opportunities for the marginalized (SDG 1, 8, and 10) and offering potential solutions for water and energy access (SDG 6 and 7).
• While the Union Budget 2018 introduced beneficial tax cuts and credit schemes like the Pradhan Mantri Mudra Yojana, it lacks sufficient focus on the 'greening' of MSMEs, which are often resource-intensive and high emitters.

APA

Green Economy Coalition (2018). MSMEs: Engines to achieve Sustainable Development Goals. https://www.greeneconomycoalition.org/assets/reports/External-Reports/MSMEs-Issue-Brief-DA-April-2018.pdf

Chicago

Green Economy Coalition. MSMEs: Engines to achieve Sustainable Development Goals. 2018. https://www.greeneconomycoalition.org/assets/reports/External-Reports/MSMEs-Issue-Brief-DA-April-2018.pdf.

Wikipedia

{{cite report |author=Green Economy Coalition |title=MSMEs: Engines to achieve Sustainable Development Goals |date=2018 |url=https://www.greeneconomycoalition.org/assets/reports/External-Reports/MSMEs-Issue-Brief-DA-April-2018.pdf |access-date=23 October 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{greeneconomycoalition2018msmes, author = {{Green Economy Coalition}}, title = {{MSMEs: Engines to achieve Sustainable Development Goals}}, institution = {Green Economy Coalition}, year = {2018}, url = {https://www.greeneconomycoalition.org/assets/reports/External-Reports/MSMEs-Issue-Brief-DA-April-2018.pdf}, urldate = {2026-10-23}, note = {Indexed by Climate Insights Directory} }