The marginal and small manufacturing enterprises (MSMEs) in India, as in other developing Countries, occupy a prominent place in the production system. In the wake of economic reforms, Marginal Small and Medium Enterprises (MSMEs) appeared to be the only hope for growth and employment creation. The unorganised sector comprising the MSMEs outperformed the organised sector in output and employment growth in the late 90s. The contribution of India's small entrepreneur to the entrepreneurial resources of the country has no parallel in other developing countries. And yet, the opportunities and threats to the MSME sector in the context of globalisation have not received adequate academic attention. This paper studies the performance of unorganised manufacturing units in Indian economy in the present scenario and analyses the various problems faced by these units which hinders their growth. So One domain of policy making should focus on enabling more segments, especially in the rural sector, access to markets and sustaining their market position. Policy measures for fostering the sector's growth need to consider the rural segment and ways and means to enhance its efficiency and productivity.
Economic Reforms, globalisation, hinders, efficiency
