MICRO SMALL AND MEDIUM ENTERPRISES (MSMES) IN INDIA - EMERGING TRENDS

The MSME sector is considered the backbone of Indian economy with a contribution of 38% to
India’s GDP, 40% share of exports and 37% share of the manufacturing output, apart from it
employing almost 120 million across the country. The MSME sector is expected to contribute
significantly to India's growing GDP. It is projected that this sector will improve India’s financial
inclusion and lessen the urban-rural divide. Again, it is expected that by 2020, India will have the
largest job ready, youth population in the world and this sector will not only generate employment
of significant level but will also become the hotbed of entrepreneurial activities. The government
realizes the urgency for providing a congenial atmosphere to foster the growth of Indian MSME
and 2017 witnessed the strengthening of current policies and introduction of new initiatives to
improve the business environment for MSMEs. The implementation of the much-awaited GST Bill
has benefitted MSMEs not only with simpler tax structure, but also with improved technology
adoption in order to comply with GST system.. The GST bill is set to revolutionize the Indian tax
system and offer the SME sector an equal footing as compared to their bigger, more-established
counterparts. The present study aims to pinpoint the latest trends that have been seen in the MSME
sector of India.