An assessment of performance of MSMES in India: With special reference to Odisha

The importance of Micro, Small and Medium Enterprise (MSME) has been recognised in recent years in both developed and developing countries for its significant contribution in gratifying various socio-economic objectives such as a higher growth of employment, promotion of exports and fostering entrepreneurship. The MSME sector is an important pillar of Indian economy as it contributes greatly to the growth of economy with a vast network of around 30 million units, creating employment of about 70 million, manufacturing more than 6000 products, contributing about 45% to manufacturing output and about 40% of exports, directly and indirectly. This sector even assumes greater importance now as the country moves towards a faster and inclusive growth agenda. Moreover, it is the MSME sector which can help realise the target of proposed National Manufacturing Policy of raising the share of the manufacturing sector in the gross domestic product from 16% at present to 25% by the end of 2022. The present paper is an attempt to focus the present status of the performance of MSMEs in India and Odisha in particular in terms of employment generation, number of units and capital formations. It also highlights the major challenges for the growth of MSMEs and initiatives taken to solve the constraints both at the government and institutional levels.