Perspective Paper Indian Government Interventions in Micro, Small and Medium Enterprise Development: An Enterprise Life Cycle Perspective

Abstract

Development of Micro, Small and Medium Enterprise (MSME) sector is the most apt means of encashing the demographic dividend of India in promoting economic growth, employment generation and inclusive growth. In this endeavour, the Indian government periodically brings out appropriate support measures in the form of policies and programmes. Though many studies have been undertaken by various stakeholders in the past on myriad issues such as credit, marketing, skill development, sickness, export, technology infusion related to MSME sector, the appropriateness and objectives of policies and schemes has not been addressed. This paper attempts to examine the utility of schemes from an enterprise life cycle perspective and to identify any impending interventions needed at any particular stage of an enterprise lifecycle model. It argues that available support measures are insufficient to address the needs of exit stages and also suggests further interventions required for the holistic development of this sector.