IIFT International Business and Management Review Journal

MSMEs: Its Role in Inclusive Growth in India

Prem Prakash¹, Pyare Lal Verma² and Vinod Negi³

First Published 8 Nov 2023. https://doi.org/10.1177/jiift.231191159

Article Information

Volume 1, Issue 2 December 2023

Corresponding Author:

Pyare Lal Verma, Department of Economics, Rajiv Gandhi Government Degree College, Chaura Maidan, Shimla, Himachal Pradesh 171004, India.
Email: plverma@gmail.com

¹Department of Economics, Government Degree College Karsog, District Mandi, Himachal Pradesh, India

²Department of Economics, Rajiv Gandhi Government Degree College, Chaura Maidan, Shimla, Himachal Pradesh, India

³HPUBS, Himachal Pradesh University, Shimla, Himachal Pradesh, India

Creative Commons Non Commercial CC BY-NC: This article is distributed under the terms of the Creative Commons Attribution-NonCommercial 4.0 License (http://www.creativecommons.org/licenses/by-nc/4.0/) which permits non-Commercial use, reproduction and distribution of the work without further permission provided the original work is attributed.

Abstract

To foster economic development, generation of jobs, reduction in poverty and promotion of equality, the role of micro-, small- and medium-sized enterprises (MSMEs) becomes crucial in every economy of the world. The MSME sector encourages equitable distribution and inclusive growth as an engine of economic progress. MSMEs have the highest employment growth rate, which has a positive impact on export and industrial growth. The primary objective of this article is to analyse MSMEs’ performance and their contribution to India’s inclusive prosperity. Over the previous two decades, the Indian economy has performed well but the rewards of this expansion have not been distributed fairly. The impact of MSMEs on various socio-economic groups and the engagement of women in India has been studied using a variety of metrics, including employment generation, regional industry distribution and entrepreneurship. The information used in this article was gathered from secondary sources such as Annual MSMEs Reports and the Handbook of Indian Economy Statistics. According to the study’s findings, the MSME sector contributes to inclusive growth in India by offering substantial job possibilities, ensuring that industries are distributed fairly and promoting entrepreneurship among women from underprivileged backgrounds. ‘Make in India’, ‘Digital India’ and other initiatives have created new possibilities for the MSME sector to grow significantly during the coming 10 years.

Keywords

MSMEs, employment, inclusive growth, entrepreneurship, economic development

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