International Journal of Research Publication and Reviews, Vol 4, no 9, pp 3086-3095 September 2023

International Journal of Research Publication and Reviews

Journal homepage: www.ijrpr.com ISSN 2582-7421

Role of Micro, Small, and Medium (MSMEs) in Indian Economy

Shrijit Rudrappa Hubballi1, Professor Deepak Shyam2

1
PES1PG22MB432, Department of MBA, PES University
2
Department of MBA, PES University

ABSTRACT

India's Micro, Small, and Medium-Sized Enterprises are a key engine for the expansion of the Indian Economy. In addition to creating job possibilities, these
MSMEs also contribute to the industrialization of rural regions while minimizing economic inequality among the locals. Women's entrepreneurship has never been
a topic that Indian society or social sciences have ever discussed. But things have totally altered since then. Women's roles have evolved from being only housewives
to now including businesswomen. MSMEs are essential to the growth. They have aided the Indian economy. greatly to the socioeconomic development of the
nation development. The purpose of this study is to analyze the role of MSMEs in employment generation and how to unleash the huge potential of MSME sectors
in India. This paper also tries to study the role of women entrepreneurs and the impact of COVID-19 on the MSME sector of India.

Keywords: - Micro, Small, and Medium enterprises (MSME), Indian Government, Sustainable development goals (SDGs), COVID-19, Women
entrepreneurs.

Introduction

In India, the MSME sector is a key contributor to economic expansion and employment creation. Additionally, it is a significant driver of entrepreneurship
and innovation. In order to promote the expansion and improvement of the MSME sector, the Indian government has put in place a variety of policies
and programs. The Micro, Small, and Medium Enterprises (MSME) sector is an essential part of India's economy. A brief description of the MSME sector
in India, including its importance, difficulties, and potential, is given below:

1. Classification and Definition:

In India, MSMEs are categorized according to whether they have invested in equipment or machinery for their businesses.

Micro Businesses: Up to Rs. 1 crore in investment.

Small businesses: range from 1 to 10 crore rupees.

Medium-sized businesses: range from 10 to 50 crore rupes.

Type of Enterprise Investment limit Turnover limit

Micro businesses <1 crore <5 crore
Small businesses <10 crores <50 crores
Medium businesses <20 crores <100 crores
MSMEs (Micro, Small, and Medium Enterprises) contribute significantly and in a variety of ways to the Indian economy. Some salient features of their
contribution are as follows:

1. Employment Creation: MSMEs are India's largest employers, employing a sizable share of the labor force. They improve livelihoods and
lower unemployment by creating job possibilities, especially in remote and semi-urban regions.

2. Economic Development: The contribution of MSMEs to India's GDP (gross domestic product) is around 30%. They contribute to economic
growth, revenue production, and poverty eradication through their operations in the commerce, services, and manufacturing sectors.

3. Export Promotion: With roughly 48% of all exports coming from India's MSME sector, the exports of that nation are quite important.
Numerous MSMEs carry out export-focused operations, which increase foreign exchange profits.

4. Inclusive growth: MSMEs encourage inclusive growth by opening up economic possibilities to many facets of society, such as female
entrepreneurs and underserved areas.
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5. Invention and entrepreneurship: MSMEs frequently act as hubs for both of these development processes. They are adaptable enough to
experiment with new concepts, adjust to shifting market demands, and progress technology.

6. Regional Development: MSMEs may be found all around the nation, particularly in rural and underdeveloped areas. Their existence
encourages economic development in places that could otherwise be overlooked, which helps to lessen regional imbalances.

7. Integration into broader supply chains: MSMEs play a significant role in the manufacture and distribution of products and services. They
encourage interdependence and efficiency by providing services and parts to bigger companies.

8. Decrease Dependence on Agriculture: MSMEs contribute to decreasing rural people's reliance on agriculture, which is frequently vulnerable
to several reasons, including climate change, by providing alternative livelihoods.

9. Social Development: MSMEs take part in community-building activities including educational programs, health services, and skill-
development projects, all of which have good effects on society.

10. Government Programmes: To assist and advance the MSME sector, the Indian government has launched a number of programs, including
finance access, technological advancement, and expansion of services.

11. Digital Transformation: To increase their reach and successfully compete in the digital era, many MSMEs are embracing technological
innovations such as e-commerce and online marketing.

Literature review

1. A report titled “MSME Growth Driver of Indian Economy” published by CII and Resurgent India (2019) The MSME (Micro, Small, and
Medium Enterprises) industry is frequently cited as one of India's economic development drivers. This industry is essential to several processes
that jointly advance and build the economy. highlighted that, during the past four years, the net number of employment generated by the
MSME sector has increased by 13.9% or over 1,00,000 MSMEs. The three Indian states that have produced the most jobs are Gujarat,
Maharashtra, and Telangana.

2. A report titled “Making Indian MSMEs Globally Competitive” published by KPMG (September 2019) noted that with an ecosystem of 63
million organizations, the MSME industry is a major engine of the Indian economy. It creates employment for around 100 million people and
produces more than 7,000 items, accounting for about 48% of all exports from the nation.

3. Nihar Ranjan Jena and Lina R Thatte (2018) studied the differences in the availability or absence of adequate enabling factors, such as
labor force, economic infrastructure, regulatory framework, size of GSDP, and density of MSME clusters, etc. in different states and
discovered that Maharashtra was the state with the best performance in the MSME sector, closely followed by Gujarat, Andhra Pradesh, Uttar
Pradesh, West Bengal, Tamil Nadu, and Kerala.

4. Dr. Sarika Srivastav (September 2020), the title “Role of MSME sector in Indian Economy: A Study with Special Reference to Gujrat”
analyses the role and contribution of Gujrat. How Gujrat became such an industrially developed state and how the growth of MSMEs has led
to the growth of Gujrat as a state. Gujarat is essential for supporting balanced regional development, stimulating innovation, providing jobs,
and accelerating economic progress. Gujarat is famous for having a thriving entrepreneurial climate, and the state's MSME sector makes a
sizable economic contribution.

5. Saranya Sasidharan and Monisha Devarajan have published research with the title “Role of MSMEs in the Indian economy –a post-COVID-
19 perspective”. MSMEs in the country were not exempt from the pandemic's enormous problems for enterprises worldwide. They did,
however, also exhibit resiliency and adaptation, highlighting their significance in promoting economic development and recovery.

6. Research titled “MICRO, SMALL AND MEDIUM ENTERPRISES (MSMEs) IN INDIA: CHALLENGES AND ISSUES IN THE
CURRENT SCENARIO” by Ashish Kumar, Vikas Batra & S.K.Sharma (December 2019) highlights that cultivating entrepreneurship and aid
in the development of robust economic systems and systemic productive capacity through connections between small and big businesses will
help India economy to boost and nourish.

7. A research paper named “Role of MSMEs in poverty alleviation and rural development in India” by Toran Lal Verma, DK Nema, and Rahul
Pandagre speaks about the essential areas that might fundamentally alter rural development and the fight against poverty is the micro, small,
and medium enterprise sector. The goal of this essay is to examine the state of the agricultural sector and the poor in the nation. The potential
that MSMEs might have to reduce poverty and support long-term rural development has been attempted to be listed by scholars.

8. A research paper titled “Risk Management in Micro, Small and Medium Enterprises (MSMEs) in India: A Critical Appraisal” by DR. ASHOK
KUMAR PANIGRAHI (December 2012) emphasizes the necessity of increasing the MSMEs' present planning system and raising the owner
managers' understanding of risk management via appropriate training and development.

9. Vinay Kumar published research titled “An Analysis of Growth of MSMEs in India and Their Contribution to Employment and GDP of the
Country” in 2017 making an effort to comprehend the role that MSMEs play in creating job opportunities and work towards the nation's
inclusive growth. This study also discusses the many issues that these MSMEs run across when carrying out their activities.
 International Journal of Research Publication and Reviews, Vol 4, no 9, pp 3086-3095 September 2023 3088

10. Toran Lal Verma and Dr. D.K. Nema produced research titled “Role Of Micro, Small And Medium Enterprises (MSMEs) In Achieving
Sustainable Development Goals” which highlights the efforts that have been made to research how MSMEs may help achieve the SDGs. We
have divided the function of MSMEs in achieving various objectives into several activity aspects. We have also included some suggested
actions that might assist MSMEs in becoming more sustainable, which will ultimately aid in the achievement of the SDGs.

11. Research paper titled “MSMEs IN INDIA: IT’S GROWTH AND PROSPECTS” by Dr. Sanjeeb Kumar Dey (August 2014) tries to concentrate
on the current performance status and future possibilities of MSMEs in India. It has been determined that this industry has a considerable
impact on the nation's manufacturing production, employment, and exports.

12. “Women Entrepreneurship and Growth and Performance of MSMEs in India” research paper published by Neha Dangi and Ritika (April
2014). The current article focuses on the development and performance of MSMEs in India as well as the issues and difficulties that women
business owners in India encounter. It also emphasizes the government's programs for female entrepreneurs.

13. Mr. Deepak Kumar Das in his article “Role of Micro, Small, and Medium Enterprises (MSMEs) in Economic Development of India” published
in September 2021 has viewed that MSMEs have made significant contributions to the socioeconomic advancement of India and have played
a significant part in the growth of the Indian economy. Along with creating job opportunities, it also promotes the advancement of the nation's
rural and underdeveloped regions.

14. “ROLE OF MSME IN EMPLOYMENT GENERATION IN INDIA” penned by DR. AMIT KUMAR (June 2020) concentrates on creating
jobs in urban and rural areas. This essay focuses on these problems and their potential effects on the nation's ability to create jobs in the future.
There has also been a brief discussion of several programs and projects.

15. Research named “MSMEs’ Role in Economic Growth – A Study on India’s Perspective” written by Dr. Surendar Gade in July 2018 tells us
that The MSMEs are contributing to society's uniform development and may be a powerful tool for using India's natural resources. If MSMEs
are established in impoverished regions, they are particularly beneficial in eliminating regional disparities.

16. “Role of MSMEs in Social and Economic Development in India” by Suhail Ahmad Bhat and Shambhavi Singh in March 2020, In this essay,
the MSME sector's contribution to India's economic and social growth through job creation and entrepreneurial development is examined.

17. A research paper titled “EXPORT COMPETITIVENESS OF INDIA: THE ROLE OF MSMEs TO PLAY!” by Dr. Suhail Mohammad Ghouse
emphasizes how the trade imbalance of the Indian economy will be closed by an effort to investigate the export performance variables and the
numerous challenges/constraints connected with the sector in order to overcome them and improve the MSMEs' export performance.

18. Vasanthi Srinivasan published a research paper in December 2009 titled “CSR and ethics in MSMEs in India” which makes an effort to
describe the situation of the Indian SME sector, discuss ethical and CSR practices in MSMEs, and pinpoint gaps in knowledge in the area of
corporate social responsibility and ethics in Indian SMEs.

19. A research paper by Puneet Singh and Davinder Singh named “TECHNOLOGY DEVELOPMENT IN MSMEs” published in March 2014
emphasizes how MSMEs play an important role in many nations, but especially in the case of India, MSMEs are crucial to the resuscitation
and growth of the national economy. It supports the growth of MSME and the function that the MSME sector may play in fostering social and
economic growth by generating job opportunities.

20. Maumita Choudhury and Chandana Goswami produced a research paper titled “MSME Financing Gaps – Review of Literature for the Period
2005 To 2016” which focuses on the main factors influencing lending to MSMEs including competitiveness, legal framework, credit
restrictions, and lack of information about SME borrowers, and company size.

21. “Role of Micro Small and Medium Enterprises (MSMEs) in the Indian Economy” is a research paper by Dr. Shivalingappa. G. Vibhuti and
Prof. Gururaj. Shivaraj. Barki discusses how the growth of a nation is mostly dependent on two sectors: the manufacturing sector and the
service sector. Manufacturing is where the majority of service sector tasks begin and are dependent. Actually, manufacturing is the only source
of revenue for the service sector.

Objectives

1. To know the impact of COVID-19 on the MSME sector of India.

2. To study about the challenges faced by Indian MSMEs.

3. To analyze the role of MSMEs in employment generation and the role of female entrepreneurs.

4. To understand the gaps in financing for MSMEs in India.

 International Journal of Research Publication and Reviews, Vol 4, no 9, pp 3086-3095 September 2023 3089

Research Methodology

The present study is descriptive and theoretical in nature. The information in the study is collected from the Ministry of Micro Small and Medium
Enterprises, the Government of India, official reports from the Reserve Bank of India, various journals, research, articles, newspapers, and other
publications, and is built on secondary data. The collected data is organized and analyzed and the current research is conducted.

Data analysis

Year Number of MSMEs (in millions) Employment created

2003 23.3 65.4

2004 24.2 68.8
2005 25.2 71.6
2006 26.3 77.3
2007 27.5 80.52
2008 28.8 84.2
2009 30.2 88.08
2010 31.7 92.18
2011 33.3 96.52
2012 35.0 101.17
2013 36.8 106.14
2014 38.7 111.43
2015 40.7 117.13
2016 42.8 111.1
2017 45.0 112.5
2018 47.3 93.9
2019 50.0 92.5
2020 53.0 89.6
2021 56.5 110.4
2022 63.4 120
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Importance of MSMEs

The Micro Small and Medium Enterprises are an essential component of India's traditional economic structure and a crucial link in the supply chain for
goods and services. This industry is regarded as a job provider and is essential to the industrialization of rural and underdeveloped areas by creating large-
scale employment.

The following sums up the significance of MSME in India:

1. Increases the depth of the labor pool: The start-up costs for inclusive businesses in this industry are extremely cheap. Additionally, it offers endless
opportunities for employment for those who are unemployed. In India, over 1.2 million individuals graduate each year, of whom 0.8 million are engineers
 International Journal of Research Publication and Reviews, Vol 4, no 9, pp 3086-3095 September 2023 3091

overall. A record amount of Effects of Covid 19 on economics and commerce 49 freshmen may be absorbed in only one year in no economy to date.
Thus, MSME serves as a conduit for bringing in new talent for the nation.

2. Economic stability in terms of leverage and growth Exports: With an 8% GDP contribution, they are India's most significant driver. The contribution
of MSMEs to employment, exports, and manufacturing has positive effects on other industries as well. MNCs are now purchasing semi-finished and
auxiliary goods from small businesses, as shown in the purchase of clutches and pads by auto manufacturers. Even after the introduction of the GST, it
fosters connections between MSMEs and large corporations. 40 percent of MSME businesses registered for GST, which is crucial since it increases
government income by 11 percent.

3. Promotes Inclusive Growth: For many years, the Ministry for Medium-Sized and Small and Medium-sized Enterprises has placed a high priority on
inclusive growth. On the other side, India's progress is hampered by poverty and suffering. In addition, it covers marginalized groups in society, which
might be a major obstacle for the Ministry of MSME.

4. Cheap labor and little overhead: Maintaining human capital through successfully trained managers who manage human resources is one of the most
frequent issues inside a large-scale organization. However, when it comes to MSME, there is little requirement for labor and no need for a highly qualified
worker. Because of this, the owner's indirect costs are also minimal.

5. Modest Administration Structure for Businesses: MSMEs might begin with resources that are partially in the owner's control. This makes decision-
making simple and effective. On the other hand, a large firm needs a specialist for every department's operation because it has a complicated organizational
structure. A small business does not, however, need to employ an outside professional to handle its administration. The proprietor may run things himself.
As a result, it could operate independently. Covid 19's effects on business and the economy were 50

6. The "Make in India" mission's schedule: With MSME, the Prime Minister of India's "Make in India" strategy has been made more relaxed. In order
to turn this dream become a reality, it uses it as its focal point. The Government has also directed the institutions to extend additional loans to businesses
operating in the MSME sector.

Challenges Faced by Indian MSME sector

MSMEs (Micro, Small, and Medium Enterprises) in India encounter a number of difficulties that may impede their expansion and sustainability. The
following categories can be used to classify these difficulties:

1. Access to Finance: insufficient funding and difficulties finding financing at reasonable rates. little knowledge of government initiatives and
financial aid programs.

2. Technology and infrastructure: Inadequate transportation, logistics, and power supply infrastructure, restricted access to contemporary tools
and technologies to boost productivity and competitiveness.

3. Burden of Regulatory and Compliance: Regulatory processes that are difficult and time-consuming, such as GST compliance. Uncertainty can
be brought on by frequent policy and regulatory changes.

4. Access to the market and competition: fierce rivalry between major companies and international competitors. Limited market access,
particularly for MSMEs who export.

5. Lack of Skilled Labour: finding and keeping qualified and skilled people is difficult. insufficient programs for vocational training in some
areas.

6. Branding and Marketing: Limited resources are available for branding and marketing initiatives that struggle to acquire a larger client base
and establish a strong internet presence.

7. Technology adoption: Adoption of new technology and digital tools faces opposition. high upfront expenditures associated with implementing
and upgrading technology.

8. Working Capital Management: Concerns with efficiently managing working capital and cash flow. Consumers' and suppliers' late payments.

9. Access to market: Limited access to domestic and foreign markets, particularly for MSMEs in rural areas. Difficulties in comprehending
customer preferences and market developments.

10. Compliance and Quality control: Maintaining the quality of goods and upholding quality standards through quality control and compliance.
respecting sustainability standards and environmental laws.

11. Supply chain disruptions: Weakness to supply chain interruptions, such as those brought on by calamities or major world catastrophes like the
COVID-19 pandemic.

12. Government Regulations: Inconsistent government regulations and excessive red tape. Delays in clearances and approvals for a variety of
licenses and permits.

13. Access to export markets: difficult export documentation and procedures. Trade restrictions and currency swings on global markets.
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14. Access to Raw Materials: It might be challenging to get high-quality raw materials at reasonable prices. Vulnerabilities in the supply chain
might result from reliance on particular vendors.

15. Employee Health and Welfare: There are difficulties in providing employees with healthcare and welfare benefits. Obeying the rules and laws
governing the workplace.

16. Concerns about sustainability and the environment: upholding environmental norms. taking cost-effective environmental measures.

The Indian government & several industry organizations have established a number of initiatives and assistance programs targeted at boosting the
expansion and growth of MSMEs in order to overcome these difficulties. However, to properly solve these issues, a number of stakeholders—including
the government, banks, industry associations, and the MSMEs themselves—must work together.

Financing Gaps in the MSME Sector of India

Micro, Small, and Medium-Sized Enterprises (MSMEs) in the country have huge financing shortages that obstruct their expansion and growth. These
funding shortages are caused by a variety of sources and fall under many major categories:

1. Many MSMEs, especially those located in rural and semi-urban regions, have restricted access to traditional banking services. It is challenging
for them to receive loans along with other financial goods since they do not have access to established banking institutions.

2. Collateral requirements are a significant obstacle for MSMEs, particularly those without substantial assets to use as collateral. Traditional
lenders frequently demand collateral in exchange for loans.

3. When MSMEs do manage to acquire loans, they sometimes encounter rates, that make financing costly and less practical.

4. Banks and other financial institutions may see MSMEs as riskier borrowers than bigger firms, which might result in stricter lending standards
and greater rejection rates.

5. Limited Access to Investment Capital: MSMEs have difficulty obtaining equity funding since venture capitalists and investors in private equity
often favor larger companies with more potential for development.

6. Because it can be difficult for MSMEs to get official credit, many of them turn to informal lending sources like moneylenders. These sources
frequently impose astronomical interest rates that keep enterprises mired in debt cycles.

7. Working capital Management Challenges: MSMEs frequently have cash flow problems as a result of poor working capital management.
Working capital loans may be difficult to get or costly.

8. Lack of knowledge about finances makes it more difficult for MSMEs to obtain finance since many of them lack the skills necessary to operate
inside the official financial system.

9. Delayed Payments: The finances of MSMEs may be hampered by client delays in making payments, particularly when dealing with
government contracts.

10. Sectoral and Geographical Variations: In India, financing gaps can range between various industries and locations, with some having more
serious issues than others.

11. Compliance and Regulatory Burden: For MSMEs, complying with legal regulations and paperwork in order to get loans can be difficult and
time-consuming.

12. Lack of Access to Risk Management Tools: MSMEs frequently do not have access to financial tools like credit protection and derivatives that
may be used to mitigate financial risks.

13. Technology Adoption for Loan Assessment: Traditional lenders seldom employ cutting-edge tools for credit assessment, such as AI and
machine learning, making it more difficult for MSMEs to establish their creditworthiness.

The Indian government and several financial institutions have developed a number of programs, including priority lending objectives, loan guarantee
schemes, and banks specifically focused on MSMEs, to solve these financing shortages and assist the expansion of MSMEs. However, to close these
gaps completely, continued work is needed to advance financial infrastructure, advance financial inclusion, and support creative financing methods
catered to the particular requirements of MSMEs.

Impact of COVID-19 on Indian MSME sector

The Micro, Small, and Medium Enterprises (MSME) sector in India, as in many other nations throughout the world, was significantly impacted by the
COVID-19 epidemic. The MSME sector is vital to the Indian economy and makes a considerable contribution to GDP, job creation, and exports. The
following are some of the main effects of COVID-19 on India's MSME sector:
 International Journal of Research Publication and Reviews, Vol 4, no 9, pp 3086-3095 September 2023 3093

1. Supply chain disruption: The pandemic affected local and international supply networks, which had an impact on MSMEs' ability to purchase
raw materials and components. Just-in-time inventory management, on which many MSMEs rely, has become difficult as a result of supply
chain interruptions.

2. Labour Shortages: Many sectors, particularly those that depend on migrant labor, were affected by the lockdowns and virus-related anxiety.
This had an effect on productivity and raised labor expenses.

3. Reduced Demand: The demand for various goods and services by MSMEs dramatically declined as a result of economic uncertainty and lower
consumer expenditure. For MSMEs, this resulted in lower sales and revenue.

4. Financial difficulty: The epidemic caused financial difficulty for many MSMEs. They found it difficult to fulfill their financial commitments,
such as paying employees and servicing loans, as a result of declining income and rising operational costs.

5. Access to Finance: During the pandemic, MSMEs had trouble getting loans and credit. Banks and other financial institutions grew more wary
of making loans, which had an effect on the expansion and sustainability of many MSMEs.

6. Digital Transformation: The epidemic hastened the MSME sector's embrace of digital technology. To survive, many firms had to make the
switch to internet sales and digital payment systems.

7. Policy Support: To assist MSMEs during the epidemic, the Indian government put up a number of relief initiatives. These comprised credit
guarantees, loan moratoria, and monetary rewards. Such a program was the "Atmanirbhar Bharat" package, which was meant to help the
MSME industry.

8. Changes in Structure: The epidemic pushed many MSMEs to reconsider their business plans and operating methods. While some had to close
down, others diversified into other product lines or explored new markets.

9. Impact on the Informal Sector: The pandemic had a substantial negative impact on India's informal MSME sector. Numerous of these
enterprises rely on a daily salary model, which leaves them extremely susceptible.

10. Long-term Resilience: The worldwide pandemic brought attention to the need for MSMEs to develop resilience through customer base
diversification, investment in digital facilities, and the development of backup plans for any interruptions.

In conclusion, the COVID-19 pandemic had a significant influence on India's MSME sector, causing supply chain disruptions, decreased demand, stress
on the economy, and the need for quick digital transformation. Even while government support programs offered some help, many MSMEs had trouble
adjusting to the new normal. The flexibility of MSMEs in adapting to shifting market conditions, ongoing policy assistance, and technical innovation are
all necessary for the sector's long-term recovery and expansion.

Role of women entrepreneurs in the Indian economy

The Indian economy is significantly and increasingly dependent on women entrepreneurs. Their contributions span several industries and are beneficial
to societal advancement, job creation, and economic expansion. The following are some critical facets of women entrepreneurs' contributions to the Indian
economy:

1. Women entrepreneurs generate employment chances both directly and through indirect means. They frequently employ and train workers,
which helps to lower the nation's general unemployment and underemployment rate.

2. Economic Growth: By creating money, raising tax receipts, and boosting regional economies, women-owned enterprises help the economy
thrive. When female entrepreneurs are successful, they help their companies grow, which in turn promotes economic growth.

3. Diverse Business Perspectives: Women entrepreneurs provide the business world with a special viewpoint and cutting-edge concepts. They
frequently spot gaps in the market and unmet demands that male entrepreneurs might miss, which results in the creation of new goods and
services.

4. Gender equality and female empowerment are promoted by the success of female entrepreneurs, which goes against conventional gender
norms and stereotypes. Beyond the professional world, this empowerment may have a good effect on their communities and their families.

5. Inclusive Growth: Women company owners frequently concentrate on socially responsible industries including healthcare, social services,
and education. By solving social concerns and enhancing the well-being of marginalized communities, their enterprises contribute to inclusive
growth.

6. Rural Development: Agriculture and rural-based businesses are popular among women entrepreneurs in India. Their involvement in rural
development programs contributes to raising production, enhancing agricultural practices, and lowering poverty in rural regions.

7. Export and International commerce: Women-owned enterprises are becoming more active in export and international commerce in India. They
help increase India's market share internationally.
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8. Micro, Small, and Medium-Sized Enterprises (MSMEs): The MSME sector, which contributes significantly to India's economy, is active with
women entrepreneurs. They frequently work in the textile, handicraft, and food processing industries.

9. Availability to Finance: Despite obstacles, efforts have been made to increase women entrepreneur's access to funding through different
government programs and initiatives. This has aided several women in starting and growing businesses.

10. Networking and Assistance Systems: To exchange information, experiences, and resources, female business owners are increasingly
developing networks and support groups. These networks aid in their success by giving them access to markets, mentorship, and assistance.

11. Beyond entrepreneurial activity, women are advancing in positions of corporate leadership as well. They are occupying key positions in Indian
businesses and shattering the glass ceiling.

In summary, women entrepreneurs within India play a complex role in the economy, supporting gender equality and social advancement in addition to
driving economic progress. It is essential for India's sustained economic development and empowerment of women all over the nation to promote and
encourage women's entrepreneurship. A environment that is favorable to women's entrepreneurship may be created via the combination of government
policies, the banking sector, and society at large.

Conclusion

In summary, women entrepreneurs within India play a complex role in the economy, supporting gender equality and social advancement in addition to
driving economic progress. It is essential for India's sustained economic development and empowerment of women all over the nation to promote and
encourage women's entrepreneurship. A environment that is favorable to women's entrepreneurship may be created via the combination of government
policies, the banking sector, and society at large.

In conclusion, the COVID-19 pandemic had a significant influence on India's MSME sector, causing supply chain disruptions, decreased demand, stress
on the economy, and the need for quick digital transformation. Even while government support programs offered some help, many MSMEs had trouble
adjusting to the new normal. The flexibility of MSMEs in adapting to shifting market conditions, ongoing policy assistance, and technical innovation are
all necessary for the sector's long-term recovery and expansion.

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