Citation:

Dr. Rakesh Singh, Pooja Devi. "Role of MSMEs in Sustainable Development of the Indian Economy" International Research Journal of Economics and Management Studies, Vol. 4, No. 5, pp. 91-97, 2025.

Abstract:

MSMEs play a crucial role in every economy of the world. It is also known as the backbone or engine of the economy. India’s MSME sector has appeared as a vibrant and dynamic sector that acts as a growth accelerator for the development of the economy. This sector is the second largest job provider after agriculture in India. There are 64 million micro, small, and medium enterprises in India, and they employ around 6 crore people. It contributes about 30 percent to the gross domestic product and more than 40 percent of the nation’s total exports. In this way, MSMEs play a pivotal role in job creation, income generation, poverty reduction, and empowerment of marginalized groups, reducing regional disparities and contributing to GDP and national income. Inclusive and sustainable development for any economy plays an important role; it ensures equitable distribution of growth benefits across society. The present research paper is focused on assessing the performance of MSME’s in Indian economy. The present study helps evaluate the economic contribution of MSMEs to the nation’s development, as well as major issues and government initiatives to help the MSME sector. The present study is based on secondary data from various MSME’s annual reports, the handbook of Indian economy statistics, journals, and various websites. According to the study findings, the Indian MSME Sector contributes to inclusive and sustainable growth by offering job possibilities, ensuring regional development, and empowering marginalized groups.

References:

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Keywords:

MSMEs, Economic development, Employment, Sustainable development.