Role of Micro Small and Medium Enterprises (MSMEs) in Economic Development of India: An Analytical Study

Abstract

Micro Small and Medium Enterprises (MSMEs) have been recognized for the growth and development of the economy worldwide as well as in India. The MSMEs sector is closely related to the generation of employment, numbers of working units, Gross Domestic Product (GDP) and Gross Value Added (GVA) of the country. However, this study has analysed the status of MSMEs in the economic development of India. For the achievement goal of this study, analytical research study has used and is based on secondary data. The data and reports were collected from different State and central government published MSME reports, Annual Report of MSME, Economic Review and World Bank Group Report etc. For the measuring of data, a percentage method has been selected. In addition to analysing the MSMEs contribution on GVA and GDP, data were selected from MSME Annual report for the period of 2011-12 to 2018-19. The conclusion of this study is that there is a positive relationship between the numbers of MSMEs, employment generation and the economic development of India. The study also revealed that the growth rate of contribution of MSMEs in GVA and GDP has fluctuated within the period under study.