Micro, Small and Medium Enterprises: Government Policies and Major Issues

Worldwide, the micro small and medium enterprises have been accepted as the engine of economic growth and for promoting equitable development. MSMEs can play a catalytic role in low-cost employment generation, poverty alleviation, rapid industrialization and economic development. The support systems established by the governments are instrumental in nurturing the growth of MSMEs. The contribution of MSME in the development of our economy is extraordinary as it contribute 8% of GDP, 45% of total manufactured output, not only this it contribute 40% of total export and also generates employment for 60 million persons by operating 26 million enterprises and 6000 products.

The paper is an attempt to highlight the government policies for development of MSMEs. Inspite of government's support system the MSMEs are facing so many problems generated through the external as well as internal elements. In our present paper an attempt has been made to discuss some of the major bottlenecks impeding the growth of the MSME sector followed by some suggestions that should be included in policies and regulation for MSME so that the same could contribute more in the development of our economy.