A Study of Government Initiatives to Promote Micro, Small and Medium Enterprises Sector in India

Abstract

According to Hon’ble Prime Minister, Narendra Modi, “Skill Development of the new generation is a national need and is the foundation of Aatmnirbhar Bharat.”

MSMEs are known as the backbone of the Indian economy; which employs nearly 11 Cr. of people and contributes over 30% of the nation's GDP and industrial output. To guarantee that MSMEs receive all of the benefits of these MSME schemes on proper time, the Indian government has taken the initiative. Micro, Small, and Medium Enterprises (MSMEs) are essential to India's economic development and expansion. This sector makes a specific contribution to exports, industrial output, employment creation, driving innovation, and inclusive socioeconomic development. To encourage the expansion and sustainability of MSMEs throughout the nation, the Indian government has put in place several policies and initiatives. Nonetheless, MSMEs have numerous obstacles concerning official credit, creating jobs, selling directly to the government, high-quality manufacturing, obtaining microcredit, ignorance, and other issues. To help new firms get off the ground, the government has already established several programs to address these difficulties. But, due to a lack of knowledge regarding various appropriate schemes, many units are not getting proper advantages. MSMEs have still several challenges and barriers when attempting to obtain financing from banks and other financial establishments. Even though the government has already taken great steps to facilitate credit flow to this industry, much more work needs to be done to fulfil the MSME sector's actual financing needs. The MSME sector in India has a bright future since it creates more job possibilities, and aids in the government's efforts to reduce other macroeconomic issues including inflation, massive budget deficits, poverty, and imbalance of payments.

The present study confers the government initiatives for the MSME sector & the implementation & progress of important schemes in the present scenario.