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Stream/Area:
-
Subject:
-
Paper ID:
IJSREM65672
Volume:
10 |
6 |
Jun 2026
Pages:
1-7
Publication Frequency:
Monthly (12 issues per year)
License:International Journal of Scientific Research in Engineering and Management follows the Creative Commons Attribution 4.0 (CC BY 4.0) License, allowing free use and distribution with proper attribution.
Department of Commerce
Government City College (A), Nayapul, Hydarabad
Micro, Small and Medium Enterprises (MSMEs) occupy a pivotal position in India’s pursuit of inclusive and sustainable economic development. They contribute significantly to employment generation, industrial output, exports, entrepreneurship promotion and balanced regional growth. In recent years, the Government of India has launched several flagship initiatives such as Make in India, Startup India, Digital India and Atmanirbhar Bharat to strengthen the MSME ecosystem and advance sustainable industrialization. This paper examines the role of MSMEs in promoting sustainable economic growth in India. It highlights how MSMEs support women’s entrepreneurship, rural industrialization, employment creation, poverty reduction, export expansion and regional equity. The study also underscores the growing orientation of MSMEs towards green practices, innovation and digital transformation, which collectively reinforce the foundations of a sustainable economy. At the same time, MSMEs contend with multiple structural challenges including inadequate access to finance, obsolete technology, shortages of skilled manpower, intense competition, infrastructural gaps and limited access to credit and markets. The paper pays special attention to issues of environmental sustainability and the diffusion of green technologies among MSMEs.The analysis is based entirely on secondary data drawn from government reports, RBI publications, Ministry of MSME documents, books, journals and credible online academic sources. The findings confirm that MSMEs are central to India’s economic expansion, job creation and social inclusion, but that their long-term progress hinges on timely policy support, better digital infrastructure, improved financing, skill development and sustainable business models. The paper concludes that through innovation, entrepreneurship and inclusive growth, MSMEs can serve as powerful instruments for realizing sustainable development and advancing the vision of Viksit Bharat 2047.
KEYWORDS
MSMEs are indispensable to India’s quest for inclusive development and sustained economic growth. The sector contributes meaningfully to employment, entrepreneurship, innovation, exports and balanced regional development. Rapid technological change, digitalization and supportive government policies are creating new opportunities for MSME expansion and competitiveness. By providing employment in both urban and rural regions, MSMEs also promote social inclusion and help alleviate poverty/ However, unresolved issues relating to finance, infrastructure, technology and environmental sustainability must be addressed systematically. For MSMEs to grow on a sustainable basis, there is a need for coherent policy frameworks, better digital and physical infrastructure, enhanced skills and stronger financial support mechanisms. The study concludes that MSMEs can emerge as powerful drivers of long-term economic growth and play a significant role in achieving the vision of Viksit Bharat 2047.
1. Beck, T., Demirgüç-Kunt, A., & Levine, R. (2005). SMEs, growth, and poverty: Cross-country evidence. Journal of Economic Growth, 10(3), 199–229. 2. Government of India. (2023). Annual Report 2022–23. Ministry of Micro, Small and Medium Enterprises, New Delhi. 3. International Labour Organization. (2022). Small Businesses and Employment Generation Report. Geneva: ILO Publications. 4. Kumar, R. (2020). Challenges and opportunities of MSMEs in India. International Journal of Commerce and Management Studies, 8(2), 45–58. 5. Ministry of MSME. (2023). MSME Sector Performance Report. Government of India, New Delhi. 6. NITI Aayog. (2022). Sustainable Development and MSME Growth in India. Government of India, New Delhi. 7. OECD. (2022). SMEs, Entrepreneurship and Innovation. Paris: OECD Publications. 8. Porter, M. E. (1990). The Competitive Advantage of Nations. New York: Free Press. 9. Reserve Bank of India. (2023). Report on Trend and Progress of Banking in India. Mumbai: RBI Publications. 10. Schumpeter, J. A. (1934). The Theory of Economic Development. Cambridge: Harvard University Press.
Publication Date
6/30/2026
Peer Review Type
Double-Blind Peer Review
Review Rounds: 2
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Conflict of Interest
The authors declare no conflict of interest related to this research work.
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