Micro, Small & Medium Enterprises (MSMEs) for Inclusive Growth

Micro, small and medium enterprises (MSMEs) are the backbone of the Indian economy. They provide immediate large-scale employment, ensure a more equitable distribution of the national income, and facilitate effective mobilisation of resources, both capital and labour, which might otherwise remain unutilised. The need to promote, modernise and reorganise these enterprises is paramount. The needs, problems and potentials of these enterprises differ not just with the nature of activity, but also with size, geographical location and structure. While the sector in general lacks access to marketing and credit facilities, the problem is more pronounced for people belonging to scheduled castes (SCs)/scheduled tribes (STs) and minorities. Therefore, it is necessary to introduce social security, training and health insurance schemes for these vulnerable groups. Though Government is providing several fiscal and monetary incentives for MSMEs, yet many of these enterprises suffer from lack of modern technology, skilled labour, inadequate bank credit, and an inefficient marketing network. All these constraints have resulted in a high cost structure placing this sector at a disadvantage vis-a-vis the large industries. This book contains 8 well-researched papers, authored by experts in the field, which provide valuable inputs pertaining to the problems and potentials of MSMEs in the context of policy emphasis on inclusive growth.