The Role of Micro, Small, and Medium Enterprises in India's Economic Development: A Critical Analysis

Prerna Pandey *

University Department of Commerce and Business Management, Ranchi University, India.

Amar Kumar Chaudhary

University Department of Commerce and Business Management, Ranchi University, India.

*Author to whom correspondence should be addressed.


Abstract

This study provides a detailed analysis of the key role that the MSME sector plays in India’s growth and development journey. It provides information about the key economic indicators and how MSME contributes to it. Emphasis was laid on major Indicators such as employment rates, GDP, FDI, export performance, demonstrating their role in boosting the Indian economy. Thorough analysis of various government schemes like SFURTI, PMEGP, ASPIRE and other such schemes has been done to illustrate their role in promoting employment, innovation, entrepreneurship and economic progress. By utilizing a comprehensive dataset obtained from reputable sources such as MSME annual report, circulars from Press Information Bureau, various government site, and RBI publications, statistical techniques including correlation analysis and regression modeling were used to examine complex relationship between MSME performance and macroeconomic variables and to derive meaningful insights into the role of MSMEs in India's economic growth and development. The findings of the study helps the reader in understanding how supportive government interventions, along with technological innovation and sustainable policies helps in sustaining the growth of MSMEs. The study concludes by laying emphasis on the importance of advanced technological and other innovation, government support and financial assistance within MSME sector to enhance its performance and competitiveness helping in nations development.

Keywords: MSME, growth and development, economic indicators, employment generation, innovation and entrepreneurship


How to Cite

Pandey, Prerna, and Amar Kumar Chaudhary. 2024. “The Role of Micro, Small, and Medium Enterprises in India’s Economic Development: A Critical Analysis”. Asian Journal of Economics, Business and Accounting 24 (7):366-84. https://doi.org/10.9734/ajeba/2024/v24i71416.

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