Quick Overview

The emerging scene indicates both the imperative and opportunity for MSMEs to play a significant role in the Indian economy. However, realization of this opportunity demands a strong political will and a concrete policy approach. As the recent experience in India shows, there are three critical constraints that have adversely affected MSME growth from the supply side: 1) confidence crisis; 2) public policy inertia; and 3) a policy holiday. Such critical constraints, and their adverse effects on flow of finance to the sector, necessities a fresh developmental approach. The need arises in relation to both, relevant entrepreneurship and a corresponding situation of relevant flow of finance. Both need to be inclusive in nature. In India, there has been significant debates on governance issues . There is some obvious rationale for arguing for ’ good governance’, with respect to its two aspects: 1) government-MSME relation; and 2) governance practice within MSMEs and their clusters. They need to be separately treated in a transitional phase. Otherwise, liberalization and the progressive withdrawal of government roles will lead to a collapse of the achievements of the past. The Report dwells into a set of state of the art issues, such as , start-up policy and practice, new strategies for the non farm sector, role of the States, Hubanomics, and skilling strategies.