TRANSFORMING THE INDIAN ECONOMY: THE CRITICAL ROLE OF MSMES

Micro, Small, and Medium Enterprises (MSMEs) are the backbone of the Indian economy, contributing significantly to employment generation, GDP, industrial output, and exports. This paper explores the transformative potential of the MSME sector in shaping a resilient and inclusive Indian economy. It delves into the theoretical foundations of MSMEs' role in economic development, assesses recent reforms and initiatives, and identifies existing challenges. By examining both qualitative and quantitative data, the study underscores how strengthening MSMEs can lead to equitable growth, reduce regional disparities, and foster innovation. It concludes with policy recommendations to enhance the sector’s productivity, competitiveness, and integration into global value chains.