Abstract:
The Micro, Small and Medium Enterprises (MSMEs) play a pivotal role in the economic and social development of the country, often acting as a nursery of entrepreneurship. They also play a key role in the development of the economy with their effective, efficient, flexible and innovative entrepreneurial spirit. The MSME sector contributes significantly to the country’s manufacturing output, employment and exports and is credited with generating the highest employment growth as well as accounting for a major share of industrial production and exports. The objective of the paper is to examine the various opportunities and challenges faced by Indian MSME sector. Further, the study also focuses on evaluating the Government in policies and strategies and other measures initiated for promoting the competitiveness among the Indian MSMEs. Basically the study focused on six key challenges which the MSME sector has been facing, viz, Dearth of easy finance and credit instruments, limiting regulatory policies, unavailability of modern, affordable technology, lack of basic infrastructure facilities, absence of exclusive marketing platforms and distribution networks and inflexible labour laws and availability of affordable skilled labour. Despite the various challenges, the MSME sector has shown admirable innovativeness, adaptability and resilience to survive the recent economic downturn and contribute significantly to India’s industrial growth. Finally the paper concluded with appropriate measures initiated by the government for enhancing the competitiveness of the sector.
