Paper Details

MSME play a significant role in Indian manufacturing sector and have become an engine of economic growth in India. They are now moving ahead with their effective, efficient, flexible and innovative entrepreneurial spirit. The sector is generating the highest rates of employment growth and account for a major share of industrial production. It is estimated that MSMEs account for almost 90% of industrial units in India and 40% of value addition in the manufacturing sector. In India, MSMEs have a crucial role to play in the overall growth of industrial economy. In recent years, the MSME sector has consistently registered higher growth rate compared to the overall industrial sector. In India MSMEs contribute nearly 45% to manufacturing and about 40% to the Indian export sector. Their contribution to the Indian GDP is 8% and the sector has registered growth rate of 10.8%. The competitive paradigm is changing continuously due to the process of liberalization and globalization. This paper tries to analyze MSME’s on the basis of SWOT in order to find ways to increase their potential towards growth, job potential, export potential and social progress. If MSME’s are developed to their full potential, they can shape the face of Indian economy and help in achieving the developed status. The number of failures and wastage in terms of money, effort, manpower and intellectual worth in MSME’s is very high. If this can be converted into success, the contribution of MSME’s will increase tenfold. Hence, MSME’s need to identify and build competitive strength to achieve sustainability.

MSME, GDP, Sustainability, Entrepreneur, Economic growth and development.