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Micro, small and medium enterprises in India – growth and challenges

Author: 
Rashmi Ranjan Panigrahi and Debabrata Hira
Subject Area: 
Social Sciences and Humanities
Abstract: 

The Micro, Small and Medium Enterprises (MSMEs) constitute an important segment of the Indian economy in terms of their contribution to country’s industrial production, exports, employment and creation of entrepreneurship base. The primary responsibility for promotion and development of MSMEs lies with State Government. However, the Government of India has always taken active interest in supplementing the efforts of the State Governments. The future of MSMEs is of major policy concern given their strategic importance in any discussion of reshaping the industrial sector. This is more so in case of India, which has one of the longest histories of government support to the sector since independence compared to most developing countries. The small-scale industries sector plays a vital role in the growth of the country. It contributes almost 40% of the gross industrial value added in the Indian economy.

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