Economic Roles Of Msmes

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ABSTRACT
The Micro, Small & Medium enterprises (MSMEs) has been termed as ‘engine of growth’ for all the developing economies which also include India. MSMEs have been playing a very important role in overall economic development of a country like India where millions of people are unemployed or underemployed & facing the problems of poverty. MSME also contribute in various socio-economic objectives such as higher growth of employment, output, promotion of exports and fostering entrepreneurship. MSMEs provide immediate large-scale employment, with lower investments and prove to be a second largest manpower employer, after agriculture in Indian economy. It is most vital sectors of the Indian economy in terms of employment generation and providing
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MSMEs have been playing a momentous role inl economic development of a country like India where millions of people are unemployed or underemployed. This sector solves many problems like poverty & unemployment through providing immediate large-scale employment, with lower investments and proves to be a second largest manpower employer, after agriculture. By contributing to more than 50% industrial production in value terms, this sector occupies a position of prominence in Indian economy. In this regard, Prime Minister Dr. Manmohan Singh stated, “the key to our success in employment lies in the success of manufacturing in the small scale…show more content…
Promotion of Small scale industries has been one of the main strategies for economic development of the developing countries since 1950s. In 2006, "Micro, Small and Medium Enterprises Development Act (MSMED) 2006" was enacted by the parliament. After this enactment, the Ministry of Agro and Rural Industries and the Ministry of Small Scale Industries were merged into a single Ministry, i.e "Ministry of Micro, Small and Medium Enterprises." Post liberalization economic conditions have created immense growth prospect for the small scale industries. The Micro, Small and Medium Enterprises in India are acting as the power and spirit of economic growth in the 21st century.

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