Government policies and growth of micro, small and medium enterprises in India

Abstract

Micro, Small and Medium Enterprises (MSMEs) play a significant role in the development of Indian and world market economies. MSMEs are the larger creator of employment all over the world. In developing countries like India, MSMEs are the agent of social and economic growth of the country and the large employment-producing sector after the agriculture sector. In the field of entrepreneurship policy making is a very complex process. Government policy affects entrepreneurial activity. People’s attitudes toward entrepreneurship, regional development, trade, the nature of the labour force, government interference and prevailing MSMEs are the factors which are affected by government policy. The growth of MSMEs is the responsibility of the government because they helped in poverty alleviation by providing employment to a larger section of the country. This paper is an attempt to evaluate the performance of MSMEs in India and the government policies for the development of MSMEs. This study is based on secondary data collected from various resources such as Reports of the MSME ministry and RBI, journals, books, etc.