PROLIFERATION OF MICRO, SMALL AND MEDIUM ENTERPRISES IN INDIA AND THE SUBSEQUENT IMPACT ON THE ECONOMY

The Micro, Small and Medium Enterprises (MSME) sector is considered to be the spine of the Indian economy. This sector has significantly contributed to the nation's financial proliferation, regional growth and income equality by generating substantial employment opportunities and also improving the standard of living of both proprietors and the workforce related to the industry. The total of registered MSMEs on the Udyam Portal (the official government portal to register MSMEs) and unregistered MSMEs in India is approximately 6.3 crores. This sector is thriving at a CAGR of 2.5%, employing 20.2 crore workers (as of July 2024). This research paper brings to light the different categories of industries and services which fall under the MSME sector and the various statutory organizations under it. It further accentuates the growth of this sector within India and also talks about its proliferation in different regions within the nation. The study discusses the MSME sector's contribution to the gross domestic product, exports and the employment prospects it has created nationwide. This white paper emphasizes the endeavors, and current and future policies the Indian government has initiated to boost this sector in terms of financial assistance, credit facilities, skill development and technological advancement. The research finally closes by analyzing a survey conducted by the Indian Council for Research on International Economic Relations (ICRIER) in 2021 on how going digital and utilizing e-commerce platforms will boost this sector.