Question

To make India a globally competitive economy, there must be a larger focus on exporting to the most demanding markets. A stronger participation of Indian Micro, Small and Medium Enterprises (MSMEs) in the global market can accelerate such a growth. This will lead to more opportunities in scaling up production, will speed up innovation and productivity. The MSME sector in India is the backbone of our country's economic structure and without this the country cannot progress. With over 63 million, MSME units, this sector covers 80% of the industries. This sector accounts for 31 % of GDP and 45% of total exports. It is also thee second largest employer in India providing jobs to over 120 million people. The MSME's should work towards becoming a part of global value chains (GVCs). It must also, find new opportunities to integrate themselves with the GVCs as exporters.

Which of the following is not a feature of MSMEs?

Options

• It involves use of more labour and less capital

• It aims at balanced regional development

• It leads to concentration of wealth in few hands

• Promotion of social welfare

Answer 1

It leads to concentration of wealth in few hands

Explanation:

The merger of the domestic and global economies is known as globalisation. Because of the increase in exports to other nations, our nation has seen a rise in foreign exchange inflows.