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Fostering an enabling environment for Micro, Small and Medium Enterprises (MSMEs) can further enhance their contributions to India’s economic and social development. Discuss.

Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

4.  Fostering an enabling environment for Micro, Small and Medium Enterprises (MSMEs) can further enhance their contributions to India’s economic and social development. Discuss. (250 words)

Difficulty level: Moderate

Reference: The Hindu

Why the question:

The editorial discusses the significance of supporting small enterprises in India. It emphasizes that small businesses play a crucial role in generating employment, promoting economic growth, and fostering innovation.

Key Demand of the question:

To write about contribution of MSME in India’s growth and development.

Directive word: 

Discuss – This is an all-encompassing directive – you must debate on paper by going through the details of the issues concerned by examining each one of them. You must give reasons for both for and against arguments.

Structure of the answer:

Introduction: 

Begin by giving factual status of proportion of MSME vis-à-vis the population dependent on it also adding the dimension of the demographic demand of India.

Body:

Elaborate upon the importance of MSMEs in socio-economic development of the country. GDP growth, Job creation, exports and entrepreneurship etc.

Next, Mention about the challenges faced by MSMES – challenges faced by small enterprises, including limited access to credit, regulatory hurdles, and competition from larger players etc.

Next, mention the steps that are required to overcome the above hurdles.

Conclusion:

Conclude by writing a way forward and summarising the overall impact of MSMEs in socio-economic development of India.