Micro, Small And Medium Sized Industries In India


India started her pursuit for industrial development after its liberation. The 1948 industrial plan resolve signified the commencement of industrialized plan expansion. Parliament acknowledged the communalist economy design. During Indian economics and industrial sector development, the small industries sectors have had a key role to play in the fiscal and social development. The small sectors were known as small and village industries before 2006 but after the micro, small and medium enterprise act, they were renamed as micro and small enterprises (MSE).

Importance of MSEs to India

Micro, small and medium sized industries contribute 40 % of the total India production and 34 % in exports. For instance, more than 95% contribution comes from non-conventional products such as leather products, readymade garments, ornaments and jewels.

Besides providing the nation’s income and being significant economically, socially they are also vital. This is because individuals who are backward socially and economically are offered employment. By offering employment in the rural areas, a limit has been put on the village to city migration, which is also a contribution of this sector. In addition, the MSE’s are vital for the individuals who have not advanced socially and who belong to certain classes and aborigines. Case in point is in India’s North West where needle work is the main profession of most women. As Raiyani asserts, 50% and 35% of Tripura’s rural men and women respectively are engaged in MSEs.

Challenges experienced by MSEs in India

According to Raiyani, even though the MSE sector is of great importance, it has deep unresolved glitches. The sector faces numerous challenges like durability and packaging of the products, therefore they do not get adequate market for their produces.

Additionally, this sector has to face the grim query of markets. Products fail to garner markets despite their high quality, hence products have to be sold at a throw away price.


There is an unparalleled significance of Micro, Small and medium sized enterprises in India. This sector, subsidizes a major amount in growth and expansion of the Indian economy. It does the work of offering employment to minorities and people of the retrograde class. The MSE sector is rife with glitches like scarcity of electricity and rudimentary infrastructure growth along with market correlated difficulties. In order for these difficulties to be solved and for the MSE sector to be developed, most important efforts have been completed. Nevertheless these efforts are not adequate. Specific efforts should be done in the industrial ministry for micro, small and medium sized development.