Which segment of the Indian economy constitutes the second-largest source of employment after agriculture?
Show answer & explanation
Correct answer: B
Explanation
Correct Answer:
Micro, Small, and Medium Enterprises (MSMEs)
Explanation:
The Micro, Small, and Medium Enterprises (MSME) sector constitutes the second-largest source of employment in the Indian economy after agriculture. It plays a vital role in the socio-economic development of the country by fostering entrepreneurship, generating massive employment opportunities across rural and urban areas, and significantly contributing to manufacturing output and exports.
Key Points:
Employment Generation: The MSME sector provides employment to over 110–120 million people across India, making it a crucial engine for job creation next to agriculture.
GDP Contribution: MSMEs account for roughly 30% of India's Gross Domestic Product (GDP) and nearly 45% of total manufacturing output.
Exports Share: The sector accounts for roughly 40% to 45% of India's total exports, playing a critical role in foreign exchange earnings.
Important Questions and Answers:
Question: Which sector is the single largest source of employment in India?
Answer: Agriculture.
Question: What ministry governs the policies, promotion, and development of MSMEs in India?
Answer: The Ministry of Micro, Small and Medium Enterprises.