Growth of MSME sector and its contribution to exports of India in post reform period

Economic growth and Export are national priority for all countries be it a developed, developing or an under Developed economy. The contribution of MSMEs especially to a developing country like India is very valuable. They not only contribute in generating employment but also encourage low skilled level workers to start as entrepreneur level in rural areas and promoting exports. The MSME sector in India is highly heterogeneous in terms of the size of the enterprises, variety of products and services, and levels of technology. It helps in industrialization of rural and backward areas, reducing regional imbalances and assuring more equitable distribution of national income and wealth. In the field of export India has undergone different phases of structural changes from pre and post Independence period to till recent times. With the economic reforms and liberalization of the economy since 1990’s there are many changes taken place in the structure and composition of export basket of India. One of the sectors which have occupied an important position in the total export of the country is Small Scale Industries (SSIs) sector. Globalization resulting in fierce competition in various product lines has forced the SME sector to adopt strategies in tune with the global trends. The paper reviews the progress of MSME sector and its role in propelling the economic growth, employment and export of the country.