Harnessing the Potential of MSMEs as an Engine of Growth

A case Study of Indian MSMEsThe United Nations General assembly has designated 27 June 2023 as MSMEs Day to raise awareness about tremendous contribution of MSMEs (Micro Small & Medium-sized enterprises) to achievement of the United Nations SDGs (Sustainable Development Goals). Small & Medium-sized enterprises are the lifeblood of many economies around the world and are important especially in developing countries like India. The Indian MSME sector plays a crucial role in the development of the Indian economy. Its contribution to the country’s GDP is nearly a third of the country's GVA (Gross Value Added) and it contributes nearly half of the country's exports. The sector is a major employer especially in the country's rural and less developed areas helping reduce the regional imbalance. The sector also strengthens other industries by providing them with raw materials and ancillary products. Underscoring the importance of MSMEs the Finance Minister of India in her Budget on February 01 2023 has proposed to spend a record Rs. 22138 crores on allocations aimed at MSMEs.