Bridging Policy and Practice: MSME Development, Industrial Promotion Policies, and Emerging Challenges in Dewas, Madhya Pradesh

Abstract

The regional economic growth and employment generation are the key drivers which get enhanced with the development of Micro, Small and Medium Enterprises (MSMEs). But their effective implementation at the local level decides the effectiveness of industrial promotion policies. The current case investigates the gap between policy design and actual execution in the industrial ecosystem of Dewas, Madhya Pradesh, one of the state’s prominent industrial hubs. Despite the availability of supportive policy measures and a strong industrial base in the region, MSMEs continue to struggle with several operational bottlenecks. The problems are bureaucratic delays, overlapping regulations, shortage of skilled workforce, and low levels of digital adoption. Further the case captures the experiences of industry stakeholders, particularly the leadership of the Association of Industries Dewas (AID), as they are the one dealing with administrative fragmentation and coordination challenges between agencies such as the Madhya Pradesh Industrial Development Corporation (MPIDC) and the MSME Department. Through a qualitative approach, the current study initiates to identify the governance bottlenecks that distress the industrial growth and investment decisions. It also discovers how industry associations can ease the negotiation between entrepreneurs and government institutions. Whatever discussion is projected in the case is helpful for policy makers and implementors for economic development of areas like Dewas. It is projected for use in management education, public policy courses, and entrepreneurship programs.

Keywords: Industrial Policy, MSMEs, Industrial Governance, Single Window Clearance, Skill Gap, Digital Transformation, Dewas Industrial Cluster

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