25, September 2025

The Role of Micro, Small and Medium Enterprises (MSMEs) in Driving the Growth of the Indian Economy: Opportunities and Challenges

VOLUME-11; ISSUE-9; SEPT-2025

Author(s): Dr. Sarparaj Ramanand Sagar

Authors Affiliations:

Assistant Professor (Guest), Department of Economics, Bhagalpur National College, T.M.B.U. Bhagalpur

DOIs:10.2015/IJIRMF/202509029     |     Paper ID: IJIRMF202509029


Abstract
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The Indian economy is the world's fourth largest economy, with a market cap of over $4 trillion. India is currently on its way to becoming the world's third largest economy, with a $5 trillion economy. The role of micro, small, and medium enterprises (MSMEs) is crucial to achieving this goal. This sector not only creates large-scale employment but also contributes significantly to innovation, exports, economic growth, and inclusive development. MSMEs are the backbone of the Indian economy, generating the largest number of jobs after agriculture. They also play a significant role in India's GDP and exports, which has a cumulative impact on the Indian economy. Employment increases income, which in turn increases purchasing power. This increase in purchasing power boosts overall demand in the economy, attracting new investment and new investors and entrepreneurs. The primary objective of this research paper is to identify the current status, challenges, contribution to the Indian economy, opportunities, and potential growth strategies of micro, small, and medium enterprises (MSMEs) in achieving the $5 trillion Indian economy.  
Key Words:  GDP Growth, Employment, Export, Entrepreneurship, $5 trillion Economy

Dr. Sarparaj Ramanand Sagar(2025); The Role of Micro, Small and Medium Enterprises (MSMEs) in Driving the Growth of the Indian Economy: Opportunities and Challenges, International Journal for Innovative Research in Multidisciplinary Field, ISSN(O): 2455-0620, Vol-11, Issue-9, Pp. 197-208.         Available on –   https://www.ijirmf.com/

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