Present Status of MSMEs in India: Challenges and Opportunities

Micro, Small and Medium Enterprises sector has emerged as a highly vibrant and dynamic sector in many developed and developing countries including India. This sector has been playing an essential role in accelerating Gross Domestic Product and export earnings besides meeting the social objectives including that of providing employment opportunities to millions of people across the economy. Despite of facing various major problems form the establishment, its performance was unexpected. Though globalization process has expanded the market facilitating supply of superior technology, this has also forced the MSMEs to face ruthless competition from large domestic firms and the MNCs. The current paper is an attempt to critically analyze the performance of MSME with respect to economic parameters namely Number of units, production, employment, quantum of investment and contribution to overall national GDP. This study is descriptive in nature and whatever analysis has been made is based on the secondary data collected from the government Websites and other reliable sources.