Author (s) :

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1). Dr. Kavita, Department of Commerce, L.S.M. Campus, Pithoragarh, Uttarakhand, India
2). Dr. Umesh Chandra Arya, Department of Commerce, H.N.B. Government P.G. College, U.S. Nagar, Uttarakhand, India

Keywords :

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MSMEs, Inclusive Development, Sustainable Development, Employment Generation, Green Innovation, Indian Economy

Abstract :

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The Micro Small and Medium Enterprises (MSMEs) together with other sectors of the Indian economy form a vital part of India's development framework. Through their operations across the nation MSMEs which hire employees from underprivileged communities create pathways for these individuals to join the formal workforce. The research paper evaluates the role of MSMEs in fostering sustainable development throughout India by studying economic and social as well as environmental development components. The study employs both descriptive and analytical research design methods while collecting data from secondary sources which include government documents from the Ministry of MSME and RBI and NITI Aayog and documents from World Bank and ILO and UNDP and peer-reviewed research articles. MSMEs drive major economic growth through their operation which generates domestic production and international sales and which establishes new industrial sectors while increasing national economic resilience. The social dimension has shown that MSMEs are large generators of employment especially in rural/semiurban areas, and these contribute to increasing job security, reducing regional inequalities, and providing for greater inclusiveness in growth. From an environmental point of view, MSMEs are transitioning towards the adoption of resource-efficient production processes, clean technologies, and circular economic practices; however, many MSMEs face limitations on access to green financing and the necessary technical capabilities. Research findings demonstrate that existing operational problems continue to restrict the sector from achieving its maximum operational capacity. The organization faces multiple challenges, including its inability to access institutional funding sources and its informal work practices, and its lower productivity rates, which result from inefficient technology implementation. There is a need for targeted policy approaches that focus on developing blended finance systems, implementing digital credit platforms, creating clusters for MSME development, and incentivizing green innovation, in order to increase the developmental impact of MSMEs. The research recommends that a coordinated, sustainability-based MSME policy framework would help achieve inclusive economic progress and facilitate India’s move toward building a resilient and low-carbon economy.

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