Question
With reference to MSME sector, consider the following
statements: I. MSME sector in India accounts for most of the employment generation in the economy. II. This sector has the potential to increase regional imbalance. III. This sector receives incentives from Public Sector Banks only. Which of the statements given above is/are not correct?Solution
Statement 1 is correct - it contributes about 45% to the manufacturing sector, and perhaps 40% to Exports, it forms the highest share of the employment sector in India, contributing around 69% to it. Statement 2 is not correct - MSME has employed more than 50 million people, scaling manufacturing capabilities, curtailing regional disparities and balancing the distribution of wealth. Statement 3 is not correct - MSME sector receives incentives from Priority Sector Lending of Public Sector Banks.
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