Entrepreneurship and Economic Development in India

Abstract In the today’s era of globalization and technological advancement, entrepreneurship has emerged as a dynamic force of economic development rather than merely a business activity. It is widely recognized as a catalyst for employment generation, innovation, capital formation, export promotion, and social transformation. In a developing country like India, entrepreneurship serves as a bridge between rural and urban development, creating opportunities for inclusive and sustainable growth. The growth of Micro, Small, and Medium Enterprises (MSMEs) and the recent surge of startups have significantly contributed to India’s GDP, foreign trade, and regional development by reducing economic disparities and empowering marginalized sections of society. Historically, entrepreneurship in India has evolved from traditional family businesses to modern enterprises supported by advanced technology, global integration, and government initiatives such as Startup India, Make in India, and MSME development policies. Despite facing challenges like limited access to finance, infrastructural constraints, and global competition, Indian entrepreneurs have demonstrated resilience and innovation. This paper explain the meaning, historical evolution, and necessity of entrepreneurship, along with its critical role in India’s economic development. It also discusses the government’s support measures and government schemes, future prospects, and challenges that need to be addressed to strengthen entrepreneurship as a driver of national growth.