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Role of Micro, Small and Medium Enterprises in Indian Economy

Author

Listed:
  • Richa Shelly

    (Department of Economics, Government Mohindra College, Patiala, Punjab, India,)

  • Tanuj Sharma

    (Chandigarh Business School of Administration, Chandigarh Group of Colleges, Landran, Punjab, India)

  • Simerjeet Singh Bawa

    (Chandigarh Business School of Administration, Chandigarh Group of Colleges, Landran, Punjab, India)

Abstract

The Micro, Small and Medium Enterprises (MSME) are crucial for the economic development of any country and play a pivotal role specifically for developing countries as they regulate economic activity and generate employment thus significantly contribute in poverty reduction. After agriculture, this sector is the second largest employer in India. Indian MSME sector has emerged as dynamic and highly vibrant sector of the economy. MSME, not only play significant role in generating large employment by investing less capital as compared to large industries but also help to develop non-farm sector by increasing industrialization in rural areas. The sector acts as the instrument of inclusive growth empowering the most vulnerable and marginalized groups. The main objectives of the paper are to explore the growth in the number of MSME units, GDP contribution, employment and exports of Indian MSME sector, to analyse the relationship between growth of MSME sector and fulfilment of Sustainable Development Goals (SDGs) 2030, to see the contribution of MSME sector in creating green jobs in India and to highlight the problems of MSME sector. This paper is based on the secondary data extracted from various reports and research papers related to MSME. The time period from 2006-07 to 2016-17 has been taken into consideration. MSME sector is the significant contributor in GDP, employment generation, total exports, achieving SDGs and green development which in turn act as backbone of the Indian economy.

Suggested Citation

  • Richa Shelly & Tanuj Sharma & Simerjeet Singh Bawa, 2020. "Role of Micro, Small and Medium Enterprises in Indian Economy," International Journal of Economics and Financial Issues, Econjournals, vol. 10(5), pages 84-91.
    • Handle: RePEc:eco:journ1:2020-05-9
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    References listed on IDEAS

    as
    1. Joyeeta Gupta & Courtney Vegelin, 2016. "Sustainable development goals and inclusive development," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 16(3), pages 433-448, June.
    2. Ministry of Agriculture GOI, 2015. "Annual Report: 2010-2011," Working Papers id:6767, eSocialSciences.
    3. Sonia Mukherjee, 2018. "Challenges to Indian micro small scale and medium enterprises in the era of globalization," Journal of Global Entrepreneurship Research, Springer;UNESCO Chair in Entrepreneurship, vol. 8(1), pages 1-19, December.
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    Cited by:

    1. K. M., Mahesh & Aithal, Sreeramana & Sharma, KRS, 2022. "Impact of Sustainable Finance on MSMEs and other Companies to Promote Green Growth and Sustainable development," MPRA Paper 112058, University Library of Munich, Germany.

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    More about this item

    Keywords

    Micro; Small and Medium Enterprises; Green Jobs; Sustainable Development Goals; Economic Development; Inclusive Growth;
    All these keywords.

    JEL classification:

    • O12 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Microeconomic Analyses of Economic Development
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • Q01 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General - - - Sustainable Development
    • O10 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - General
    • O40 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - General

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