An Evaluation of MSMEs Growth and Performances

Abstract

Today the MSME sector, being one of the major prominent sectors of the Indian economy, significantly contributing to the country's industrial production, exports and employment. MSME sector plays significant role in socio-economic development by motivation and supporting industrialization in rural and backward areas. The MSME sectors continuously progress facilitates for entrepreneurship development, which in turn assists in wealth creation and achieving inclusive economic growth. According to estimates, MSMEs contribute over 40% to the total industrial production. In addition, it is estimated to account for 45% of the manufacturing output and 40% of total exports of the country. Further, the sector has outperformed over rest of the industrial sector in terms of growth. In China, the MSME sector contributes around 60% of the GDP and accounts for around 99% of the total enterprises providing around 75% ·of the total employment. In case of Japan, the SME's share in GDP is 56.8%, constituting 99.7% of all enterprises and providing employment of 70% of total employment. This paper is focusing on assessment of quality practices, performances and challenges of MSMEs in India.