India’s Micro, Small, and Medium Enterprises (MSME) sector is considered as the bulwark of the Indian economy due to its contribution of around 48% to the Indian exports and 29% to the GDP. More importantly, it plays an important role in the provision of employment to millions of people in a country like India where unemployment rates are too high. The emergence of e-marketplaces is a boon for such enterprises as such marketplaces provide a platform to reach the masses with fewer efforts and in no time. The facility of digital data-based credit ratings further helps entrepreneurs to raise loans for their businesses. The development of such MSMEs is important in India. Such businesses use local resources optimally, hire people from the local area (who can’t find employment elsewhere), boost the country’s exports, and ensure equitable distribution of income. Entrepreneurs running small-scale industries can be called self-employed as they run their own businesses.

Which of the following CAN NOT be considered as a merit of the MSME sector?

Boosts employment It is capital intensive Equitable distribution of income in the country Utilizes the locally available resources

It is capital intensive

MSME sector is more labour intensive and NOT capital intensive.