MSMEs and Inclusive Growth in India: Employment, Innovation, and Policy Perspectives

Abstract

Micro, Small and Medium Enterprises have been emerging as dynamic drivers of economic growth, innovation, and employment in both developing and developed economies during the last few decades. In India, the MSME sector contributes about 30% to the national GDP, accounts for 48% of exports, and employs over 110 million. The research paper reviews the role of MSMEs as engines of growth in India by tracing their contributions to the economy, the challenges faced by these enterprises, and the policy support mechanisms. The paper discusses the assessment of performance of the sector and also the outcome of interventions through the government with a view to evaluating the performance and impact of government interventions using primary and secondary data. Key findings indicate that MSMEs make a very valuable contribution to inclusive and sustainable development in spite of persistent problems like limited credit availability, technological backwardness, and inadequate infrastructure. The paper concludes with strategic recommendations aimed at enhancing MSME competitiveness, innovation, and integration into the global economy.