MSME SECTOR CONTRIBUTION TO INDIAN ECONOMY
Keywords:
MSME, India, GDP contribution, employment generation, export performance, policy framework productivity.,,Abstract
MSMEs or Micro, Small and Medium Enterprises sector is one of the most powerful
pillars of India’s economic structure. For national output, employment, export, innovation and
rural industrialization MSMEs are contributing a significant share till 2025. With an
approximate contribution of 31% to India’s GDP, 49% to the overall exports and over 110
million jobs being generated in this sector (Ministry of MSME, 2024), its systemic importance
in nation-building cannot be overemphasized. This research paper highlights the economic
contribution, structural composition, policy context, financial architecture and structure,
technological disruptions to MSME sector in grater details. Drawing on secondary data from
government reports, academic literature and industry analysis, the paper assesses the sector’s
performance 2019–2025 and anticipates future opportunities against respective background of
digitalization, global trade and sustainable development.
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