With India's vast cultural diversity, geographical expanse and entrepreneurial spirit, Micro, Small and Medium Enterprises (MSMEs) have always played a vital role in economic growth and employment generation and overall development of the economy. There are more than 42 million enterprises in various industries, employing over 105 million people. Together, these accounts for 45 per cent (apex.) of the industrial output and 40 per cent (apex.) of the exports. The MSME sector performed well with multidimensional aspects of the socio-economic needs and by increasing of the standard of living of the people.
However, there is an urgent need for institutional arrangements that would facilitate interactive learning through clustering, technology improvement, new modes of financing investment and skill upgradation, and interaction with the universities and public research laboratories across a wider market space which are identified as crucial factors. Moreover, as always, labour continues to receive a shoddy deal in the MSMEs across space and sub-sectors, irrespective of reforms. The key constraints faced by the MSMEs include limited capital, inadequate and timely banking finance, lack of systematic planning, limited access to international market and knowledge management, and red tapism, etc.
The most important change needed is in the attitude of the institutions and the mindset of the policymaker which are engaged in the task of small enterprise development and that MSME policies deserve for achieving the socio justice, along with the individual’s aspirations. So, it is time now Indian MSMEs should explore the global market and be competitive; and Innovation is the buzz word for businesses to survive, dynamism and entrepreneurship must exist in its fullest degree for staying fit and relevant.