SMEs contributed maximum to job creation

The small and medium units in the country have contributed 40 per cent to creation of jobs after the economic slowdown, said an ASSOCHAM study.

While the job creation after the slowdown is so high, they had laid -off only one-fourth of its workforce, the study added.

The micro, small and medium enterprise (MSME) sector plays a crucial role in the country's economy contributing 45 per cent to industrial output and 40 per cent to exports. There are about 26 million such enterprises employing about 60 million people.

The government has also provided fiscal incentives like reduction of excise duty and subsidised interest to small units to help small enterprises recover.