An Analysis of Growth of MSME Sector in Indian Economy

For every economy Micro Small and Medium Enterprises are the strongest driver of economic development. The objective of the study was To Analyze the Contribution and Growth of MSME sector in Indian Economy and Study the MSME employment share in India as well as select Asian Economies. secondary data have been collected from website of Ministry of MSME, Reserve Bank of India, Asian Development Bank, National Sample survey, Central Statistical office, Press Information bureau etc. The findings suggest in countries such as China, Japan, jobs ranging from 65 to 70 percent are generated by the MSME and the employment share in India is around 50 percent and progress can be possible by providing various policy benefits. The MSMEs of India faces many challenges such as availability of quality raw materials, lack of information on policy incentives, Structural barriers, Inadequate availability of basic infrastructure facilities, lack access to formal credit. The study concludes with the strength of the Industry associations many researchers are agreed that if Industry associations shall represent problems of MSMEs with strong impact and work with government in finding the solutions then it will be very much helpful to whole MSME sector in India.