Role of Small and Medium Enterprises in Indian Business Sector

SMEs are widely acknowledged as a major engine of economic growth. It is the tool that encourages the growth of the country. The potential of this industry to create jobs has long been understood and valued. Compared to major sectors, the sector offers employment prospects with a much higher level of intensity. However, issues like expanding trade deal complexity, rapid change in the economic environment, and increasing automation are putting the sector's productivity in danger. In order to improve current technology and the support system, it is crucial to evaluate the performance of SMEs. Micro, Small, and Medium-Sized Enterprises (MSME) play a crucial role in fostering significant employment opportunities at relatively lower capital costs than big industries. They also support the industrial development of rural and underdeveloped areas, which significantly reduces regional disparities and ensures a more equitable distribution of the nation's wealth.