ROLE OF MSMEs IN ECONOMIC DEVELOPMENT OF INDIA

Micro, small and medium enterprises have been considered the foundation of Indian economy’s growth for a long time. The micro, small and medium enterprises sector has emerged as a highly vibrant and dynamic sector of Indian economy around 30% of India's GDP, 45 percent of India's Exports, registering over 6.82 crore unit by September 2025 and employing nearly 30 crore people. It contributes significantly to the economy and social development of the country by fostering entrepreneurship, large Employment opportunity at lower capital cost next only to agriculture. With the arrival of advanced technology and the presence of both local Enterprises and multinational corporations as competitors this industry has been impacted by liberalization and globalization in India since 1991. This paper is an attempt to analyse the impact of MSMEs on development of Indian economy, for this research secondary data has been used. This study reveals that MSMEs are complimentary to large Industries as ancillary units. MSMEs sector contributes significantly to inclusive industrial development of the country by promoting growth and development of small business, by providing support to existing enterprises, by adopting cutting edge technology and encouraging creation of new Enterprise. This sector playing a pivotal role in driving entrepreneurial growth and fostering business innovation. By diversifying across sectors, MSME cater to both domestic and global market demands with a wide range of products and services. These enterprises are instrumental in generating significant employment opportunities at a lower capital cost compared to large industries.