Pune’s Micro, Small and Medium Enterprises (MSME) sector is likely to end calendar year 2024 on a high, according to a survey conducted by the Mahratta Chamber of Commerce, Industries and Agriculture (MCCIA), with over 81 per cent respondents. They expect good growth. This positive outlook is reinforced by the fact that credit growth in the sector has been good year-on-year.
Industry and others hope that this increase will translate into job creation and job retention, which will help reduce the unemployment problem in the district.
“81 percent of companies in our survey expect growth. Only 9 percent of the respondents said that there has been an increase,’ MCCI Director General Prashant Girbane said about the survey in which 108 companies participated.
According to the State Level Bankers’ Conference (SLBC), the apex body of bankers in the state, credit to MSMEs has shown steady growth in the last three financial years. In the 2021-22 financial year, 95 percent of the target of Rs 2,49,138 crore was disbursed to the state. In financial years 2022-23 and 2023-24, banks have disbursed 120 and 117 percent of their target.
This year, till September 30, i.e. in the second quarter of the financial year 2024-25, banks have reported 68 per cent target disbursement in the state while Pune district has reported 72 per cent disbursement. This is a sign of revival and strong growth in highly leveraged sectors, Girvane said.
MSMEs are said to be the drivers of the economy and are major job creators. It is estimated that this sector has created 50 percent of employment. In Pune district alone, according to rough estimates, the sector employs more than 5 lakh people.
Of the 108 companies participating in the MCCIA survey, 37 percent increased revenue by more than 20 percent. Most of the companies that responded positively are in the electronics and defense manufacturing sector.
The question remains whether debt collection and a positive approach will lead to job creation and job retention. “We should see that growth comes at a time when the sector is reporting increased sophistication in terms of production. Hopefully this growth spurt will create some employment at a modest level,” said an MSME owner in Chakan.
Click here to join Express Pune Whatsapp Channel And get a curated list of our stories