Role of Micro Small and Medium Enterprises (MSMEs) in Economic Growth -A Study on India's Perspective

Abstract

MSMEs in our country have been playing a very important role to provide employment opportunities and they involve lower cost of capital as compared to larger industries. Industrialization in the rural as well as backward areas, there has been reduction in regional imbalances and also assured equitable distribution of national wealth and income. The domain of MSMEs has been widening among different sectors and this has diversified different types of product and services for meeting demands of people functioning in domestic and global market. The objectives of the study are to understand the role of MSMEs in the Indian economy, to evaluate the contribution of males and females towards growth of MSMEs and to estimate the distribution of MSMEs based on different social groups. This study is descriptive in nature as it is based on understanding about the role which MSMEs play in the Indian economy. MSMEs are considered to be complementary to the larger industries since the contribution by the ancillary units as well as this sector has contributed in a significant manner in inclusive India’s industrial development. This study is based on evaluation of contribution of males and females towards growth of MSMEs and to estimate the distribution of MSMEs based on different social groups. This study is based on secondary data which is collected from different published sources like Journals, newspapers, Government reports, websites etc.