Financial Inclusion and the Growth of Micro Small and Medium Scale Sectors (MSMEs) in India

Economic development of any country is directly related to the level of industrial growth. If the industrialization starts from villages, then the impact on its development will be enormous. In India, Micro Small and Medium scale Enterprises (MSMEs) have been playing an important role in the overall industrial development as less capital investors of consumer goods and employment providers, thereby helping the country in reducing the poverty and unemployment. The MSMEs are the best vehicle for inclusive growth, to create local demand and consumption and also to fight with the global meltdown. Public policy has rightly accorded high priority to this sector in order to achieve balanced, sustainable, more equitable and inclusive growth in the country. A micro enterprise of today will be a big enterprise of tomorrow, and might well become a multinational enterprise eventually, if given the support in finance and capacity building This study attempts to analyse the various schemes and new financing methods available for MSMEs and provide them with a roadmap for optimal use. The study also outlines the pivotal role of the Financial inclusion and the growth of MSMEs.. It also highlights various financing options and credit schemes by MSMEs in developing MSMEs.