MSMEs A Revolutionary Tool to Help the Mission “Make in India”
Abstract
Prime Minister Narendra Modi’s ‘Make in India campaign is creating waves both in India and abroad. Given the government’s intention to boost domestic manufacturing and create new jobs, its proposal to introduce a new policy for Micro, Small and Medium Enterprises (MSMEs) deserves a closer look. While Prime Minister’s invitation to international companies to make investments has been receiving a lot of attention, the government’s close interaction with industry associations from different regions and sectors within India to discuss specific problems inhibiting domestic enterprises deserves equal consideration. MSME is a key tool for the success of this program because MSMEs sector in India is highly diverse in terms of the volume of the venture, variety of products and services, and levels of technology. The MSMEs have been globally considered as a cascade of economic expansion and as key instruments for promoting fair development. The major benefit of the sector is its employment possibility at low capital cost. The labor intensity of the MSME sector is much higher than that of large enterprises. MSMEs constitute more than 90% of total enterprises in most of the economies and are credited with generating the highest rates of employment growth and account for a major share of industrial production and exports. This paper closely analyses the emerging opportunities for the MSMEs in India in the present scenario of economic transformation with new Government Interventions and also highlights the basic challenges and opportunities.
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