Title:
ROLE OF MICRO, SMALL AND MEDIUM ENTERPRISES (MSMES) AND ITS ECONOMIC OBSTRUCTIONS IN INDIA

Authors:
Atul Saikia

Abstract:
Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy. MSMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural & backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of national income and wealth. MSMEs are complementary to large industries as ancillary units and this sector contributes enormously to the socioeconomic development of the country. This sector has often been termed as the "Engine of Growth" for developing countries. The MSME sector is the second largest employer of human resources. In India, the MSME sector employs nearly 11 crore people and contributes to around 17 percentage of the GDP. MSME sector possesses enough potential and possibilities to give Indian economy a big leap forward. With a little support from the government and financial institutions, these units can be on the way to becoming the pillars of growth. Poor infrastructure and inadequate market linkages, lack of adequate and timely access to finance are among key factors that have constrained the growth of the sector. Taking into account the enormous potential of the small sector, the entrepreneurs and the policy-makers must act collectively to facilitate growth in this sector. Considering the potentiality of MSME sector to strengthen the economy, this paper attempts to examine the importance and contribution of this sector in economic development of the nation. The present study is also attempts to analyse the problems MSME sector.