ROLE OF GOVERNMENT IN THE DEVELOPMENT OF MSMEs

Abstract

Micro, small  and  medium  enterprises (MSMEs) plays  a  pivotal  role  in  the  socio-economic development  and   are  referred  to  as  the  growth  engine  of  the  nation. “The  progress  of  a  country  depends  not  on  mass  production  but,  on  production  by  masses.” This  statement  of  Mahatma  Gandhi  was  brought  in  concrete  form  by  MSMEs  of  the  nation. The  sector  aims  at  percolating  fruits  of   development  to  the  grass  root  level.  It  enables  the  country to  earn  foreign  exchange  with  low  import  intensive  operations. The  products  produced  caters  domestic  demand  and  increases  exports  from  the  country. This  industrial  segment is highly  heterogeneous  in  terms  of  techniques  of  production,  size,  product  produced  or  service rendered, and so on. They  have  to  deal  with  challenges, diffuse  threats, grab opportunities , adapt  to  dynamic  business  environment  to  ensure  their  survival  in   the long run. They  are  supported  by  the  government  through  various  schemes –  MUDRA (Micro Units  Development and Refinance Agency), MSMED Act, 2006 (Micro  Small  And  Medium Enterprises   Development  Act) ,etc.                                                                       

It  encourages  young  blood  to  utilize  their  capabilities  and  show  their  business  acumen. They contribute in industrialization of rural and backward areas.  They  showcases  diverse cultural  heritage  (Handicrafts)  and  exhibits  hidden  potential  in  Indian  entrepreneurs  as well  as  industrial  units  to  rest  of  the  world. The  object  concerned  with  the  research  paper  is  to  analyze  the  current  status  of  the  vibrant  MSMEs  which  are  functional  in  the country.