The Ministry of Micro, Small and Medium Enterprises (MSMEs) has come up as the growth engine of the economy. The sector is showing signs of revival after the Covid-led slowdown in the early part of the current financial year 2020-21, Reserve Bank of India (RBI) Governor Shaktikanta Das said on Thursday.
"MSME has emerged as the growth engine of the economy with a vast network of about 6.33 crore enterprises contributing 30 per cent of our nominal Gross Domestic Product (GDP) and 48 per cent to exports," he said while addressing an event on the occasion of 185th Foundation Day Celebration of Bombay Chamber of Commerce and Industry.
The sector has been rendered vulnerable by the pandemic necessitating concerted effected effects to combat the stress and focus on the revival of the sector, he added.
The central bank made crucial interventions to support the economy's critical sector, he said.
Das called for increasing digital payment and digital penetration across the country.
"As digital capabilities improve and connectivity becomes omnipresent technological innovation and technology-driven revolution are poised to quickly and radically change India's economy," he said.
He said digital technology has the potential to raise the productivity of agriculture, manufacturing and businesses as well as improve the delivery of public services like healthcare and education.
"In the financial sector this could lead to higher financial inclusion, lesser information asymmetry and reduced credit risk," he added.