Performance and problems in financing of micro, small and medium enterprises (MSMEs) in India

The present study aims at identifying the performance of Micro, Small and Medium Enterprises (MSMEs) in India. The study examines the performance and trends in institutional financing as well as direction of credit flow to MSME sector covering the recent period. The study revealed that MSME sector in India has contributed significantly to the overall growth of the economy in terms of GDP, overall industrial production, output, number of units, employment generation and exports. Further the study revealed that though credit flow to this sector under various schemes of Govt. and SIDBI is steadily increasing, but at the same time it is also facing problems of finance, marketing, technology and unrestricted imports from multinationals due to greater integration with world economy under WTO regime. Thus, need of the hour is to provide more support to MSME sector in terms of credit, technology upgradation, marketing, infrastructure and skill development and protect this sector from the vagaries of global/financial markets and misuse of WTO/TRIPs regime.