Building a Prosperous India: The Transformative Journey of MSMEs

Abstract

This study examines the crucial role played by Micro, Small, and Medium Enterprises (MSMEs) in shaping India’s economic trajectory from 2023 to 2025. Recognized as vital contributors to the nation’s GDP and overall economic expansion, MSMEs are increasingly integrated into the country’s economic policies, making them key drivers of growth and transformation. The research primarily aims to assess the effectiveness of government initiatives that are designed to nurture the development of MSMEs. It scrutinizes several flagship programs, including the Pradhan Mantri Mudra Yojana (PMMY), the Technology Center Systems Programme (TCSP), and the Credit Linked Capital Subsidy Scheme (CLCSS). By employing a mixed-method approach that combines detailed quantitative data analysis with in-depth qualitative case studies, the study provides a comprehensive evaluation of these policies and their impact on MSME growth. In addition to measuring their contribution to GDP, the investigation delves into the challenges that MSMEs face in today’s rapidly evolving economic landscape. Key obstacles include securing adequate funding, adopting new technologies, and gaining access to broader markets. These issues are particularly pressing considering global economic uncertainties and swift technological changes that continuously reshape industry standards. Preliminary findings indicate that while government schemes have substantially bolstered the contribution of MSMEs to India’s GDP—potentially reaching up to 50% by 2025—there remain notable discrepancies in the accessibility and effectiveness of these initiatives. Such disparities underscore the need for targeted policy refinement. The study concludes by offering strategic recommendations designed to enhance the existing support framework, ensuring that MSMEs can achieve sustainable growth and further strengthen India’s economic resilience and inclusivity.

Keywords: CLCSS, GDY, MSME, PMMY, TCSP.

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