UNDERSTANDING THE SME: ROLE AND DISTRIBUTION IN INDIA

Abstract

India's SME sector is a key driver behind its economic growth story. Employing 40% of country's workforce, next only to the agricultural sector -the sector has the potential to spread industrial growth across the country and can be a major partner to help accelerate the process of inclusive growth. Micro, small and medium enterprises, have always served as a model of the socio-economic policies of the Government of India. These enterprises are interchangeably referred to as SMEs or MSEs or SMBs depending upon the category of enterprise and contribution. This sector undoubtedly plays a vital role in the growth and development of Indian economy. Further, this growth has to be sustained since it contributes substantial revenues to the central exchequer. The MSMEs also account for a major share of industrial production, creation of employment and contribution to the GDP. Therefore, it is understood that MSMEs play a crucial role in the growth of the country. The present study discusses the structure of Micro, Small, and Medium Enterprises in India and deliberates about the role and distribution of elements of type, category, gender and employment in MSME Sector in India.