Growth of Micro, Small and Medium Enterprises (MSMEs) in India and its Role in Indian Economy

Abstract

Through business innovations, Micro, Small, and Medium Enterprises (MSMEs) have made major contributions to the expansion of entrepreneurial endeavors. MSMEs are expanding their sphere of influence across the economy, generating a diversified range of products and services to fulfil the needs of both domestic and international markets. MSMEs are contributing to the national production, employment & exports and, economic development of the country. The present paper aimed to determine the growth of MSMEs in India and its role in Indian economy. The data of present research paper was collected by exhaustive literature survey through electronic database at Web of Science, MSME online site, Annual reports of GOI, PubMed, Scopus, Science direct etc. According to statistics from the Central Statistics Office (CSO), M/o Statistics & Programme Implementation. With 630.52 lakh estimated MSMEs companies in India, the micro sector accounts for more than 99 percent of all MSMEs. The small sector, with 3.31 lakh (accounts 0.52%)estimated MSMEs, and the medium sector, with 0.05 lakh(accounts 0.01%) estimated MSMEs, respectively, of total estimated MSMEs. 324.88 lakh MSMEs (51.25 percent) are in rural areas, whereas 309 lakh MSMEs (48.75 percent) are in urban areas, according to the estimated number of MSMEs.The contribution of the MSME sector to the country's Gross Value Added (GVA) has grown from 10.97 % in FY 2015-2016 to 12.88 in FY 2018-2019 respectively.Further the share of MSMEs in all India GDP was 29.34% in FY 2014-2015, and in year FY 2018-2019 it has grown to 30.27%. MSMEs are expanding their sphere of influence across the economy, generating a diversified range of products and services to fulfil the needs of both domestic and international markets.