Micro, Small and Medium Enterprises (MSMEs) — Problems and Policies

The tailor shop, the small auto-parts workshop, the family-run food processing unit — none of them make headlines, but together enterprises like these employ far more people in India than any single large corporation does. This topic asks why so many of these small units struggle to grow, and what policy has tried, over decades, to do about it.

In two minutes

Micro, Small and Medium Enterprises (MSMEs) are classified by their investment in plant and machinery or equipment and their annual turnover, and despite being a major source of employment and output, they face persistent problems of finance, technology, marketing and scale, which government policy has tried to address through credit, technology and marketing support.

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