Year: 2020 | Month: March | Volume 9 | Issue 1
Micro, Small and Medium Enterprises (MSMEs) in India: The Engine of Growth
B.B. Sahoo
K.C. Swain
DOI:10.30954/2249-6637.01.2020.5
Abstract:
With rising cost of crop cultivation, narrowing margin, fast increasing family expenditure and rising unemployment, agriculture may not succeed in offering meaningful living to millions of farmers in rural India. Seeing the growing contribution of Micro, Small and Medium Enterprises (MSMEs) in increasing employment and income of the people, it is felt that MSME sector may supplement farmers’ income and help rural India to achieve equity and promote a balanced economic development. The MSMEs also support in industrializing rural areas. Growth of the sector in the last few decades is quite encouraging. But these enterprises are facing many bottlenecks such as infrastructure, demand, quality raw material, manpower with skill and credit facility. This article attempts to study the growth, importance and key challenges of the MSME sector in India. The article concludes with a statement that MSMEs are the lower layer of the enterprise system, which contributes to the overall GDP and welfare by generating additional employment, increasing export and maintaining equity. Therefore, MSMEs must be explored and made use of as a powerful tool of growth and social justice.
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