CONTRIBUTION OF MSME’S IN INDIAN ECONOMY – PROBLEMS AND PROSPECTS

Abstract

Micro, Small and Medium Enterprises have been the backbone of industrial sector of any economy and hence a major concern for the Government. These enterprises play imperative role in the economic development of our country as well and their contribution is noteworthy in the employment generation as during 2009-10 afforded employment to about 695 lakhs people which is 5.47% more as compare to last year. Even these enterprises recorded 11.59% growth in their production in the same year and their development ranges from traditional rural handicrafts to technology oriented industrial units. In spite commendable input to the economy, these enterprises have not been able to set an anticipated landmark may be due to lack of initiatives, ignorance, poor financial support, improper or less coverage of training or skills development programmes, poor marketing strategies etc.

The government is playing a vital role to sustain these enterprises through various policy measures that resulted constructive force and the enterprises help to generate various opportunities for Indian population though the full potential is yet to be realized. Mounting role of MSMEs in Indian economy and their problems encourage analyzing their performance and the problems for the better solution to set a desirable marker. This paper analyses the performance of MSMEs and explores the key factors like productivity, employment, GDP contribution etc. to highlight the problems of MSMEs and suggest the possible measures for superior position in economic development.