Page 6 - IMDR - Journal of Management Development and Research - March2019-20

ministry has set a target to up its contribution to GDP to 50% by 2025 as India

becomes a $5 trillion economy.
Exports: It contributes around 45% of the overall exports from India. Inclusive

growth: MSMEs promote inclusive growth by providing employment
opportunities in rural areas especially to people belonging to weaker sections of

the society. For example: Khadi and Village industries require low per capita
investment and employs many women in rural areas.

Financial inclusion: Small industries and retail businesses in tier-II and tier-III

cities create opportunities for people to use banking services and products.
Promote innovation: It provides opportunity for budding entrepreneurs to build

creative products boosting business competition and fuels growth.

Thus, Indian MSME sector is the backbone of the national economic structure and
acts as a bulwark for Indian economy, providing resilience to ward off global

economic shocks and adversities.

Leading factors for the growth of MSMEs in India: -
1. Campaigns like Skill India, Start-up India, Digital India and Make in India aim

to provide MSME players with a level playing field and a definitive push

towards enhanced productivity. Digitalization.
2. Digitization: Increasing internet penetration, customer’s familiarization with

digital payments fuelled by B2C ecommerce players facilitate MSME sector
growth.

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