A Study on MSMEs’- Role in Propelling Economic Development of India & a Discussion on current HR

Abstract- MSME (Micro, Small and Medium Enterprises) are the heart of Indian Industry. Their contribution especially to a developing country like India is very valuable. They not only contribute in generating employment but also encourage low skilled level workers to start as entrepreneur level in rural areas. As data given by Economic Times in June 2013, they employ close to 40 % of India's workforce. Their main boost is given to Indian Manufacturing industry which is around 45 % and export oriented units which are close to 40%. The MSME sector in India is highly heterogeneous in terms of the size of the enterprises, variety of products and services, and levels of technology. It helps in industrialization of rural and backward areas, reducing regional imbalances and assuring more equitable distribution of national income and wealth. MSME complement large industries as ancillary units and contribute enormously to the socioeconomic development of the country. MSME manufacture more than 6,000 products ranging from traditional to high tech items. Even though contributing so much in industrial growth, MSME internal operation is still far behind from the other developed industries. So focus of my paper is the HR operations and systems an MSME should have, a minimalist approach mandates that any business, no matter the scale of operations but should have a clear talent philosophy guiding vital talent management processes like talent acquisition, assessment, development, retention and leadership. Apart from that there are so many other challenges like credit to MSME, access to markets, lack of technological knowledge, lack of proper infrastructure etc. To overcome these challenges govt. Of India also taken some steps like MSME Development Act, 2006 has been enacted to facilitate these units first time and towards fulfilling the Credit needs of MSME various schemes have bee