Published on June 2012 | Economics

GROWTH AND PERFORMANCE OF MICRO, SMALL AND MEDIUM ENTERPRISES IN INDIA DURING THE PERIOD FROM 2000-01 TO 2010-11

This paper examines the growth and performance of Micro, Small and Medium Enterprises (MSMEs) in terms of employment, exports, production and growth in number of units. The sector occupy strategically important place in Indian economy in view of its considerable contribution to employment, production and exports (Planning Commission, GOI). Micro, Small and Medium Enterprises (MSMEs) facilitate the tapping of resources for productive purposes with minimum amount of capital investment, which in turn helps to strengthen the industrial structure of a nation. These enterprises existed in India for a long time in various sectors and contributed significantly in bringing down regional imbalance; generating employment opportunities, output, and exports; reducing poverty; fostering entrepreneurship and accelerating economic development. It occupies a position of prominence in India and contributes over 45 percent of the industrial production in terms of value-addition. This sector plays a key role in the industrialization process and accounts for one-third of exports, and employs the largest manpower next to agriculture. The paper concludes with policy recommendations to ensure the sustainable growth and performance of MSMEs in India.