MSMEs FOSTERING ECONOMIC DEVELOPMENT THROUGH ENTREPRENEURSHIP & EMPLOYMENT GENERATION IN INDIA

Abstract

The Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades. It contributes significantly in the economic and social development of the country by fostering entrepreneurship and generating large employment opportunities at comparatively lower capital cost, next only to agriculture. MSMEs are complementary to large industries as ancillary units and this sector contributes significantly in the inclusive industrial development of the country. In India MSMEs are the backbone of the Indian economy. MSMEs have long been regarded as the foundation of the nation’s economic growth. They actively contribute to increasing the country’s GDP rate by engaging in commerce on a national and international scale. They provide employment to more than 12 crore Indians across the country. They account for approximately 45% of India's total exports. MSMEs are widely regarded as a source of economic growth and a way of achieving more equitable development. They are recognized for having the highest rate of economic growth. MSMEs have propelled India to new heights due to their low investment requirements, flexibility in operations, and ability to develop suitable native technology. In this research paper we studied about the contribution of MSMEs in the economy of India. Along with this we also studied about the registration of new MSMEs.