Growth and Working of Micro Small and Medium Enterprises in India: An Overview

Abstract

Micro Small and Medium Enterprises (MSMEs) is a vibrant and extensive sector of the Indian economy. It makes a significant contribution to the annual GDP, exports, and employment. In an environment of sustainable growth, economic reforms and, opening of the Indian economy. The role and importance of the MSME sector has become more significant. This sector is characterized by low investment requirement, operational flexibility, region mobility, and import substitutions. MSME Sector has been playing acrucial role in the overall economic development of a country like India and has the advantage of providing gainful employment opportunities with low investment and reduce regional disparities through the dispersal of industries into rural, semi-urban, and backward areas. This study makes an attempts to study the growth and, performance of MSMEs in terms of an increase in the number of working units, employment and investment levels in the recent past. This paper also tries to identify the problems faced by these units and the policy initiatives taken by the government.