Micro, Small, and Medium Scale Enterprises in India: Current Scenario, Problems & Prospectus

Abstract

Micro, small, and medium-scale enterprises (MSMEs) play a crucial role in India’s economic development by contributing to employment generation, industrial output, exports and poverty alleviation. They are considered the backbone of the Indian economy. The Government of India has recognized the importance of the MSME sector and has taken various measures to promote and support its growth. Scaling the growth of MSMEs requires a comprehensive approach involving various aspects such as finance, technology adoption, skill development, market access, policy support and sustainability. However, these industries face numerous challenges that hinder their growth and sustainability.

This research paper aims to identify and discuss the key problems encountered by MSME in India, the current scenario and future prospects as well as encompassing issues related to finance, infrastructure, policy, technology, market access and skill development. Understanding these challenges is essential for developing effective strategies and policies to promote the growth of MSMEs and enhance their contributions to the Indian economy.