Industrialisation and Role of MSMEs in India

The micro, small and medium enterprises sector is one of the most vibrant and dynamic sectors that has been contributing significantly to the growth and development of developing and advanced countries on the one hand and playing a pivotal role in reducing regional and social inequalities on the other hand. MSMEs accounted for around 90 per cent of the total business worldwide and up to 40 per cent of the national income in emerging economies. The importance of the MSME sector in the economic and social growth of India and other parts of the world has attracted considerable attention from scholars and policymakers. The classification of industrial units in India has been done on the basis of investment in plant and machinery. MSMEs are analysed on the basis of certain key indicators including fixed investment, production, employment, and number of units.