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Q70 (CDS-II/2022) Economy › Industry, Infrastructure & Investment › Industrial growth trends Answer Verified

Consider the following statements about the Micro, Small and Medium Enterprises (MSMEs): 1. The MSMEs comprise a dynamic sector of the Indian economy providing large employment opportunities. 2. MSMEs reire low capital cost and help industrialization of backward regions. 3. MSMEs contribute enormously to socio-economic development. How many of the above statements is/are correct?

Result
Your answer: —  Â·  Correct: D
Explanation

The Micro, Small and Medium Enterprises (MSME) sector is recognized as a highly vibrant and dynamic component of the Indian economy [2]. Statement 1 is correct as MSMEs provide large-scale employment opportunities, second only to agriculture, employing over 11 crore people. Statement 2 is correct because MSMEs are characterized by comparatively lower capital costs than large industries and play a pivotal role in the industrialization of rural and backward regions, which helps reduce regional imbalances [1]. Statement 3 is correct as the sector contributes enormously to socio-economic development by ensuring equitable distribution of national income and wealth [1]. Since all three statements are accurate descriptions of the MSME sector's role and characteristics in India, the correct option is 4.

Sources

  1. [1] Indian Economy, Vivek Singh (7th ed. 2023-24) > Chapter 7: Indian Economy after 2014 > MSME's role in socio-economic development: > p. 234
  2. [2] https://msme.gov.in/sites/default/files/MSME_at_a_GLANCE_EN_0.pdf
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