Consider the following statements about the Micro, Small and Medium Enterprises (MSMEs): 1. The MSMEs comprise a dynamic sector of the Indian economy providing large employment opportunities. 2. MSMEs reire low capital cost and help industrialization of b

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Q: 70 (CDS-II/2022)
Consider the following statements about the Micro, Small and Medium Enterprises (MSMEs):
1. The MSMEs comprise a dynamic sector of the Indian economy providing large employment opportunities.
2. MSMEs reire low capital cost and help industrialization of backward regions.
3. MSMEs contribute enormously to socio-economic development. How many of the above statements is/are correct?

question_subject: 

Economics

question_exam: 

CDS-II

stats: 

0,51,25,0,10,15,51

The correct answer is option 4: all three statements are correct.

Statement 1 is true as the MSME sector is a significant contributor to the Indian economy and provides a large number of employment opportunities. These enterprises are known for creating jobs at a faster rate compared to large industries.

Statement 2 is true as MSMEs typically have lower capital requirements compared to larger enterprises. They often operate in rural or backward regions, promoting industrialization and economic development in these areas.

Statement 3 is true as MSMEs play a crucial role in promoting socio-economic development. They contribute to income generation, poverty alleviation, and inclusive growth by providing employment opportunities to people from various socio-economic backgrounds.

In conclusion, all three statements are correct, highlighting the positive impact of MSMEs on the Indian economy, employment generation, and socio-economic development.