Page 5 - IMDR - Journal of Management Development and Research - March2019-20

A Conceptual Study on Impact of Union Budget 2020 on MSMEs
Sector

Piyush Nakrani

Hrishikesh Deshmukh

ABSTRACT: -

The Micro, Small and Medium enterprises of India is an important driving factor
for the growth of Indian economy. MSMEs not only provide the employment

opportunities but helps in the process of industrialization in rural areas

simultaneously reducing the unequal income distribution among the residents.
MSMEs contribute significantly in the development of Indian economy through

export production, domestic production, low investment requirement, operational
flexibility, technology-oriented enterprises etc. The SMEs are complimentary to

large industries operating in the economy & contribute significantly in the

development of the country.
Keywords : MSME, Indian Economy.

Introduction: -

Worldwide, MSMEs have been accepted as the engine of economic growth and

for promoting equitable development. They constitute over 90% of total
enterprises in most of the economies and are credited with generating the highest

rates of employment growth. With low investment requirements, operational
flexibility and the capacity to develop appropriate indigenous technology, SMEs

have the power to propel India to new heights. Hence, it seems like there is a
silent revolution happening in India powered by MSMEs.

Importance of MSMEs for Indian Economy: -
Employment: It is the second largest employment generating sector after

agriculture. It provides employment to around 120 million persons in India.
Contribution to GDP: With around 36.1 million units throughout the

geographical expanse of the country, MSMEs contribute around 6.11% of the
manufacturing GDP and 24.63% of the GDP from service activities. MSME

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