MSMEs in the Economic Development

In a developing country like India, the role and importance of Micro, Small, and Medium Enterprises are very significant towards poverty eradication, employment generation, rural development, and creating regional balance in the promotion and growth of various development activities. It is estimated that this sector has contributed about 40% of the gross value of output produced in the manufacturing sector. The generation of employment by the small-scale sector is more than five times that of the large-scale sector. This clearly shows the importance of small-scale industries in the economic development of the country. The small-scale industries have been playing an important role in the growth process of the Indian economy since independence despite stiff competition from the large sector and not very encouraging support from the government.