New Delhi, Aug. 12 -- With underemployment widespread and artificial intelligence (AI) expected to disrupt existing jobs, India needs stronger job-creation engines, with the micro, small and medium enterprise (MSME) sector emerging as a potential driver, according to an article in The Indian Express by Nilanjan Banik and Pradeep Racherla, professors and co-founders, Economic Policy Centre, Mahindra University.

MSMEs Face Structural Constraints

India's MSME sector employs more than 320 million people and contributes around 31 per cent of GDP, 35 per cent of manufacturing output and 49 per cent of exports. However, the sector remains largely informal and fragmented, with many firms concentrated in low-value activities.

The authors noted ...