MSMEs SECTOR PROGRESS AND PERFORMANCE IN INDIA

Abstract: Micro, Small, and Medium Enterprises (MSMEs) form a crucial pillar of the Indian economy, contributing approximately 30% to the country’s Gross Domestic Product (GDP), 45–46% to total exports, and generating employment for over 110 million people across 63–73 million enterprises. Their diverse presence spans rural and urban regions, encompassing manufacturing, services, and trade, and playing a pivotal role in regional development, industrialization, and innovationThe analysis explores the sector’s contributions to GDP, employment, exports, and entrepreneurship, while also identifying the structural challenges that constrain its potential. Key government initiatives, policy measures, and success stories are synthesized to provide a comprehensive understanding of the sector’s trajectory. Inclusive and sustainable development for any economy plays an important role; it ensures equitable distribution of growth benefits across society. This paper examines the role of MSMEs in India’s economic growth using secondary data from government reports, academic studies, industry publications, and reputable databases. 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.

Keywords: MSMEs, Economic development, Sustainable development, GDP Contribution, Employment Generation.