Performance of Micro, Small and Medium Enterprises and Its Role in Inclusive Growth in India

Micro, small and medium enterprises (MSMEs) plays a key role in employment generation, poverty reduction, balanced regional and economic development. Most of industries under this category are labour intensive and lesser capital is required to set up a MSME unit as compared to large industries. These enterprises are also helps in achieving balanced regional development as these are generally established in rural and economically backward areas. They are also act as ancillary units to large industries. This sector has a significant contribution in the growth process of Indian economy since independence, in spite of facing stiff competition from the large industries. According to ‘National Manufacturing Policy-2011’, the micro, small and medium enterprises (MSMEs) contribute 45% of manufacturing sector output, 40 % of manufacturing exports and it employs about 117.1 million persons in the country. This clearly shows the importance of MSMEs in the economic development of the country. The present paper examines the performance of MSMEs and its contribution in inclusive growth of India. For this investigation various parameters like number of units, employment, production, exports etc. have been used. The present study reveals that there is significant contribution of MSMEs in terms of employment growth, production, women participation and other economic indicators. Efforts should be made by Government to provide strong technological support and non – financial support like training and skill development to empower this sector to compete globally.