Impact of Micro, Small, And Medium Enterprises Role on Employment Generation in India

Abstract

Micro, Small, and Medium Enterprises (MSMEs) are crucial drivers of economic growth, playing a pivotal role in creating job opportunities and addressing challenges such as unemployment, economic inequalities, and poverty within the country. Despite their seemingly modest scale, MSMEs significantly outpace the agricultural sector in terms of employment generation. In the context of India, the MSME segment is acknowledged as a primary catalyst for socio-economic development, making substantial contributions to the national GDP. Widely acknowledged as indispensable contributors to the Indian economy, Micro, Small, and Medium Enterprises (MSMEs) have a profound impact on both employment generation and the promotion of entrepreneurship. These enterprises, categorized as either manufacturing or service-oriented, are further distinguished by investment criteria. The MSME sector is integral to the economic and social progress of the nation, providing direct employment to a staggering 110 million individuals through an extensive network of approximately 633.88 lakh units. This study aims to scrutinize the role of the MSME sector in employment creation in India, utilizing a range of primary and secondary sources gathered from government reports and MSME publications.