India’s Microscale Companies: An Assessment of Post-liberalization Effectiveness

Abstract

In many countries around the world, small enterprises are the driving force behind economic expansion. ‘ New millennium national growth, particularly in India, has been greatly aided by it. Because of their ability to create jobs, foster entrepreneurship, utilize local resources, and strengthen the industrial backbone of the economy, they are a popular choice with politicians and the general public. More than five decades of industrial growth in India have been attributed to the small-scale sector, particularly through (SSIs), which have been regarded as essential to the country’s economic well-being. The Indian SSI sector has made a significant contribution to GDP growth in terms of job creation, foreign exchange profits, and the proportion of industrial output and contribution to national income. The central and state governments of India provide a wide range of advantages and incentives to their citizens. Additionally, the incentives not only motivate entrepreneurs in the SSI sector to create enterprises, but they also contribute to the economy’s entrepreneurial foundation. New entrepreneurs face numerous difficulties as a result of a lack of adequate support services and infrastructure.