IMPACT OF GOVERNMENT POLICIES ON THE GROWTH OF MSMES IN INDIA

Micro, small and medium sized (MSME) companies play an important role in India's economic growth, making significant contributions to employment, industrial production and exports. Recognizing their importance, the government has implemented a variety of policies focused on financial support, tax reform and digital transformation. This study uses government reports, industry research and secondary data from financial institutions to verify the effectiveness of these policies to stimulate (MSME) growth. It also examines sectoral challenges in financial access, fiscal compliance and digital adoption, identifying the obstacles that hinder growth despite political interventions. Analysis shows that credit guarantee fund trust for micro and small business fund (CGTMSE) and emergency credit guarantee (ECLG) have good access to loans, but maximum permissible margin (MPM) is also required. There is still a warranty issue, strict acceptance standards. Tax reforms, particularly, simplified compliance, but claimed strong management and compensation. Digital initiatives, such as the registration of UDYAM and Digital MSME, contributed to formalization, but many companies, especially in rural areas, do not have the necessary digital literacy and infrastructure. In addition, problems with access to the market, inadequate financial conscience and difficulties with regulation continue to interfere with the expansion of MSME