Government Programmes for MSMEs in India: A Review of Their Role in Economic Development

Micro, Small and Medium Enterprises (MSMEs) play an important role in India’s economic development by contributing to employment generation, manufacturing output, exports, entrepreneurship and regional development. The present paper reviews selected government programmes introduced to support the MSME sector and examines their relevance in addressing the major challenges faced by MSMEs in India. The study is based on secondary information drawn from government sources, scheme documents and published material related to MSME development. The paper focuses on major government initiatives such as Zero Defect Zero Effect certification, PM Vishwakarma Yojana, Credit Guarantee Scheme for Micro and Small Enterprises, Credit Linked Capital Subsidy and Technology Upgradation Scheme, Pradhan Mantri Mudra Yojana, Samarth Udyog Bharat 4.0 and Design Clinic for MSMEs. These schemes broadly aim to improve credit access, technology adoption, skill development, quality standards, market access and entrepreneurial capacity among MSMEs. The review also highlights key problems faced by the sector, including limited access to finance, regulatory burden, infrastructure gaps, low productivity, lack of innovation, shortage of skilled labour and weak awareness of government schemes. The study finds that government programmes provide an important support framework for MSMEs, but their effectiveness depends on awareness, accessibility, timely credit delivery, simplified procedures and better implementation at the local level. Strengthening scheme delivery, improving digital and financial literacy, promoting technology upgradation and creating stronger market linkages can help MSMEs contribute more effectively to inclusive and sustainable economic development in India.