Guwahati: The Micro, Small and Medium Enterprises (MSME), sector which forms the major portion of the industries in the North Eastern Region and crucial to the health of the economy is expecting major sops in the upcoming Union Budget 2023-24.

According to Economic Census 2005 conducted by Central Statistics Office (CSO), the numbers of MSMEs in the North- East Region, including Sikkim in the MSME Sector accounts for a total of 10.64 lakh MSMEs which is quite significant comparing to other parts of the country.

Assam, popularly called the Gateway to North-East India has the highest number of MSMEs estimated at 6.62 lakhs, housing numerous industries like tea, agriculture and allies, sericulture and tourism.

These numbers have increased much more in last 15 years.

For instance in Assam there are approximately over 67,000 industries in Assam, out of which 88 per cent are micro, 11.5 per cent are small and medium.

Recently, the central government has sanctioned over Rs 1,536 crore to set up micro, small and medium enterprises under the Atmanirbhar Bharat Abhiyan.

The Micro, Small, and Medium Enterprises (MSME) sector contributes 33% of India's GDP and creates 120 million jobs across all industries, making it a key sector in the country's economy.

However, the MSME sector is dealing with several issues after the COVID pandemic and is expecting a booster package from the Union Budget.

MSMEs in the Northeast region are facing numerous challenges from the global COVID-19 pandemic to increasingly tougher competition – not only against their counterparts from outside the region but also from large entities.

Some of these particular challenges facing Northeast MSMEs that have constrained the growth of the sector are poor infrastructure, lack of capital, and inadequate market linkages.

UNDP has been working closely to assist the development of the MSME sector across India and have been assisting many MSMEs in Northeast India and most recently to sustain and weather the challenges related to the COVID-19 pandemic. UNDP and India Exim Bank.

In Northeast India, MSMEs play a crucial role in the region’s development; despite only accounting for 1.5% of India’s MSMEs, in Northeast India they contribute nearly 62% to the economy in terms of employment, output and exports.

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