Role of MSME in Economic Development

Abstract

The Micro, Small and Medium Enterprises (MSMEs) sector plays an important role in India’s economic development. MSME helps to increasing employment opportunities, promoting innovation, encouraging exports, and contributing continuously to GDP. MSME is a growth engine, and short-term inclusive development by supporting entrepreneurs from rural and urban areas, decreasing regional disparities, and encouraging industrialization at grass root level. However, the industrial sector faces hurdle such as limited access to finance, poor infrastructure, outdated technological adoption, and facing competition from smaller and larger industries. Ensuring sustainable development needs integrating green technologies, skill development, and digital transformation, alongside supportive government policies and institutional frameworks. Strengthening MSMEs is very important not only for economic growth but also for achieving long-term sustainable and inclusive growth.