International Journal of Research and Scientific Innovation (IJRSI) | Volume V, Issue V, May 2018 | ISSN 2321–2705

A  Study on Micro, Small and Medium Enterprises (MSMEs) in India: Status and its Performance

Jeeban Jyoti Mohanty

Consultant at SIDBI, Lucknow HO and Ph.D Research Scholar, Department of Economics, Ravenshaw University, Odisha, India

Abstract: – The Micro, Small & Medium enterprises (MSMEs) is one of the most vital sectors of any economy in general and India in particular in ensuring equitable, inclusive & employment friendly economic growth. This sector also plays very important role in socio–economic development of Indian economy on account of their inherent advantages like low capital requirement, high employment generation, decentralisation of industrial activity, utilization of locally available resources and widening of entrepreneurial base. MSMEs has performed exceedingly well and enabled the country to achieve a wide measure of industrial growth and diversification over five decades.
In this paper an attempt has been made to analyze the performance of the MSME sector and will touch upon, in brief, some of the various measures in recent times undertaken by Government of India and SIDBI to advance this vibrant and booming sector. The paper also discusses the present status of MSME sector and its performance. The study highlights the major challenges faced by MSMEs sector in Indian economy along with its policy implication. Different methodologies have been used to satisfy the various objectives of the study. Secondary data has been analyzed to study the MSMEs sector and its performance in India. A number of literatures have reviewed to understand the major advantages and the challenges of MSMEs sector in Indian economy so far.

Finding and analysis justifies that the MSMEs sector as whole is the engine of growth for India economy. The study reveals that there is an increasing pattern in the number of units, employment, market value of assets. It is significant to note that there exist high degree of relationship between the total factory unit and employment. The study analysis has found that MSMEs has exhibited a good performance in recent years. However at the same time its challenges are also not ignored. The role of MSMEs sector is growing rapidly and they have become a thrust area for future growth for rural and urban development and its economic upliftments have a lot of policy implication.

Key words: MSMEs, Small Scale Industries (SSI), industrial sector, Employment and Indian Economy, CAGR