MSMEs run on promoter’s savings and need insurance as much as other businesses
The Micro, Small & Medium Enterprises (MSMEs) have been contributing significantly to the country’s economy and serve as a robust platform for business innovation. According to the MSME ministry data, there are about 6.3 crore MSMEs in India, which provide employment to approximately 11.10 crore Indians and contribute about 27% to the country's GDP. It is important to note that the micro-segment is more than 99% of the MSME population, while the Small & Medium segment is less than 1% of the MSME universe. Compared to large or multinational firms backed by relatively deeper pockets, MSMEs require a bare minimum protection plan for managing the risks. The Union Budget FY22-23 also re-emphasized the need to make the MSME sector more robust and provide ways and means to mitigate the risks such as fire, theft, or worker safety.