MSMEs in India: Growth, Performance and Various Constraints, Impeding their Growth

Abstract

The MSMEs are playing a vital role in the development of both developed and developing countries. In India, these industries are considered to be the backbone of the economy. These enterprises have emerged as a dynamic and vibrant sectors of the economy. Today, it accounts for nearly 45 per cent of the gross value of output in the manufacturing sector and over 40 per cent of the total exports from the country. The performance and growth of Ministry in Micro, Small and Medium Enterprises MSMEs and its organizations is to assist the States in their efforts to encourage entrepreneurship, employment and livelihood opportunities and enhance the competitiveness of MSMEs in the changed economic scenario.  In India, they are vital from the point of view their overall contribution in terms of number of units, production, exports, employment and their spread in rural areas. This paper is an attempt to analyse the performance of MSMEs in terms of various parameters, looking the various problems hindering their growth and different policy initiatives undertaken by the government for their growth. This paper is wholly based on the secondary data obtained from the websites of different ministries.

Keywords: Micro, Small and Medium Enterprise (MSMEs), Production, Employment, Exports, Growth, Performance, Competitiveness etc