Micro, Small and Medium Enterprises (MSMEs) in Indian Economy: The Experience of Mizoram

Abstract

Micro, Small and Medium Enterprises (MSMEs) constitute an important segment of Indian economy in terms of their contribution to country’s industrial production, exports, employment and creation of an entrepreneurial base. It is estimated that in terms of value, the sector accounts for about 45% of the manufacturing output and 40% of the total exports of the country. The sector is estimated to employ about 59 million persons in over 26 million units throughout the country. Further, this sector has consistently registered a higher growth rate than the rest of the industrial sector. There are huge products ranging from traditional to high-tech items, which are being manufactured by the MSMEs in India. It is well known that the MSME sector provide the maximum opportunities for both self-employment and jobs after agriculture sector. The present paper examines the growth and performance of MSMEs with regard to number of units, employment, in India and major constraints faced by them in Mizoram, a small state of the North East region. Though Mizoram is considered as peaceful state in India, the basic infrastructure needed for the growth of enterprises in terms of electricity, transport, communication and banking facilities pose a big challenge. Moreover, lack of vision, lack of willingness to explore the opportunities and absence of entrepreneurial mind hamper the industrial development