Identifying critical barriers in the growth of Indian Micro, Small and Medium Enterprises (MSMEs)

Abstract

Worldwide, Micro, Small and Medium Enterprises (MSMEs) play an important role in national economy by contributing significantly in nation’s Gross Domestic Product (GDP), employment generation and exports. Despite this, this sector is plagued with problems which threaten their survival. This paper is based on a survey carried out in 84 Indian MSMEs to investigate the problems faced by them that affect their performance such as Government policies, taxation rules, power availability, training facility and use of Advance Manufacturing Technologies (AMT) etc. The findings suggest that there exists considerable scope to improve the performance of MSMEs provided they adopt suitable AMT.