Vol. 11, Special Issue 11, Part A (2025)

Abstract
The MSME sector is an important pillar of Indian economy as it contributes greatly to growth of Indian economy with a vast network of around 30 million units, creating employment of about 70 million, manufacturing more than 6000 products, contributing about 45 percent to manufacturing output and about 40 percent of exports, directly and indirectly. This sector even assumes greater importance now as the country moves towards a faster and inclusive growth agenda. Moreover, it is the MSME sector which can help realize the target of proposed National Manufacturing Policy of raising the share of manufacturing sector in GDP from 16percent at present to 25 percent by the end of 2022. The present paper is attempt to focus the present status of performance of MSME in India. Particular in terms of employment generation, no. of units and capital formations. it also highlights the major challenges for growth of MSME and initiatives taken to solve the constraints by both government level and institutional level.