Lead economist at the World Bank, Ejaz Ghani, pens a blog on the rise of SMEs in India. SMEs account for over 95 percent of establishments and over 80 percent of jobs in the manufacturing sector in India. They are becoming increasingly prevalent and affect everything from poverty levels and shared prosperity to the allocation of activity in the economy and beyond.
Ghani identifies the two facts about employment growth - small establishments in the tradable sector and the development of one-person enterprises within the SME tradable sector. He also explains why rapid urbanization of SMEs appears to be the most important factor in driving growth.
