Citation:

Afsana Sultana, Dr. Sanjeeb Hazarika. "MSMEs and Cluster Development In India: Assessing Economic Impact And Policy Initiatives" International Research Journal of Economics and Management Studies, Vol. 4, No. 7, pp. 135-141, 2025.

Abstract:

Micro, Small, and Medium Enterprises (MSMEs) play a vital role in India's economic development, contributing significantly to employment generation, industrial output, and exports. These enterprises constitute a major share of the country’s business ecosystem, accounting for nearly 30% of GDP and 45% of total manufacturing output. Despite their importance, MSMEs often face numerous challenges, including inadequate access to finance, lack of infrastructure, limited technological adoption, and restricted market reach. To address these issues and enhance the competitiveness of MSMEs, the Government of India has introduced the Cluster Development Programme (CDP), which focuses on creating clusters of MSMEs operating in similar industries within a defined geographic location. This approach facilitates collective efficiency, resource sharing, common infrastructure development, and skill enhancement. This paper examines the impact of MSMEs in India’s economic growth and analyses the role of government policies and initiatives in supporting cluster development.

References:

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Keywords:

MSMEs, Cluster Development Programme, Economic Growth, Competitiveness.