The current scenario of Indian economy has been characterized by optimistic growth and strong macro-economic fundamentals. With one of the youngest populations in the world, India is currently witnessing an entrepreneurial revolution. Liberalization, growing economies of scale of Indian enterprises, increased focus on and access to advanced technologies, a commitment to improving the ease of doing business, business friendly reforms, etc. have led to the economy emerging as a much sought-after destination for foreign investments. With the expected growth in the economy and increasing competitiveness, Indian manufacturing is set to grow rapidly in the years to come. At such crossroads, features like small size, lower capital requirement, use of indigenous technology and local resources, employment intensity and suitability for rural areas make a strong case for the promotion of MSMEs. Given the 38 per cent contribution of MSMEs to the Indian GDP and 46 per cent share of overall exports, accelerated MSME growth is fundamental to India achieving and sustaining a high GDP growth.
This issue of Policy Watch focuses on the overall state of MSME development in the country, opportunities for MSMEs in some critical sectors, some of the latest MSME initiatives by the Government demonstrating its commitment towards the melioration of business environment for MSMEs and significant policy recommendations in various areas that will assist in putting Indian MSMEs on a high growth trajectory.