Role of msmes in Economic Growth of India

Micro, Small and Medium Enterprises (MSMEs) are the backbone of industrial development and important for both developed and developing countries. MSME sector always represented the model of economic development, which emphasized high contribution to domestic production, significant export earnings, low investment requirements, employment generation, effective contribution to foreign exchange earning of the nation with low import-intensive operations. The development of this sector came about primarily due to the vision of our late Prime Minister Jawaharlal Nehru who sought to develop core industry and have a supporting sector in the form of small scale enterprises. MSMEs sector has emerged as a dynamic and vibrant sector of the economy. The Indian economy is expected to grow by over 8 per cent per annum until 2020 and can become the second largest in the world, ahead of the United States, by 2050, and the third largest after China and the United States by 2032. In this context it is very pertinent to examine the policy support and opportunities for the development of MSMEs; and the contribution of MSMEs for economic growth of India; besides offering suggestions for sustainable growth of MSMEs.