Across the world, Micro, small and Medium Enterprises (MSMEs) are the engine for any nation. The significance of this sub-sector in India is well known, this industry has grown enormously in past two decades in contrast to the corporate giants with regards to their share to Indian economy. It is also evident from the statistics, that they manufacture over 8,000 products and 40%-50% of total exports from India and contribute 8% of Gross Domestic Product. Though 31 million undertakings, they provide employment to around 73 million people,. More significantly MSMEs are second biggest occupation provider in India after agriculture Ministry of MSMEs, 2012.In developing countries, Micro, Small and Medium Enterprises (MSMEs) form a large portion of industrial composition. Especially in India, Post-independence era, MSMEs have been a dominant force by means of their contribution to income and employment generation. The role of MSMEs in start-ups in India – introduced the small scale sector policy 1991 for the purpose of investment limit increases, to setup factoring services, the infrastructure facility was increased, the marketing structure was improved, quality up - gradation was increased. The total number of small and medium scale working enterprises increased from 79.6lakhs in 1994-95 to 510.57lakhs in 2014-15. The study is based on secondary data to identify the significance of MSMEs. The present paper focused on the following concepts:Across the world, Micro, small and Medium Enterprises (MSMEs) are the engine for any nation. The significance of this sub-sector in India is well known, this industry has grown enormously in past two decades in contrast to the corporate giants with regards to their share to Indian economy. It is also evident from the statistics, that they manufacture over 8,000 products and 40%-50% of total exports from India and contribute 8% of Gross Domestic Product. Though 31 million undertakings, they provide employment to around 73 million people,. More significantly MSMEs are second biggest occupation provider in India after agriculture Ministry of MSMEs, 2012.In developing countries, Micro, Small and Medium Enterprises (MSMEs) form a large portion of industrial composition. Especially in India, Post-independence era, MSMEs have been a dominant force by means of their contribution to income and employment generation. The role of MSMEs in start-ups in India – introduced the small scale sector policy 1991 for the purpose of investment limit increases, to setup factoring services, the infrastructure facility was increased, the marketing structure was improved, quality up - gradation was increased. The total number of small and medium scale working enterprises increased from 79.6lakhs in 1994-95 to 510.57lakhs in 2014-15. The study is based on secondary data to identify the significance of MSMEs. The present paper focused on the following concepts: Learn about the role of Small Industry. Understand problems faced by Small and Medium Scale Industries. Analyse policies made to solve the problems
.Key words: Micro, small and Medium Enterprises, Indian economy, Gross domestic Product, Ministry of Micro, Small and Medium enterprises.
