Role of MSME sector in India: An empirical study

Industrialization is one of the most significant constituents of the development of wealth for any nation. India is regarded as one of the newly industrialized nations of the world. Micro, small and medium enterprises (MSMEs) occupy a major role in India as they provide numerous opportunities to entrepreneurs and create meaningful jobs providing greater job satisfaction. MSMEs are regarded as nurseries for entrepreneurship and innovation. MSMEs play a vital role in India by making a major contribution in the growth of Indian economy. They manufacture various products, roughly 6,000, and contribute around 43% to India’s total exports. Authors have used secondary data for the period from 2006 to 2015 and studied the growth trends of MSMEs in India, the role of MSMEs in employment creation and the relationship between employment generated by MSMEs and the GDP of India. The data is analysed using graphical representation, correlation and regression techniques. The study found that the number of MSME units impacts employment generation and there is a significant relationship between employment generation and the GDP of India.