MICRO, SMALL, AND MEDIUM ENTERPRISES IN INDIA:PRESENT OPPORTUNITIES AND CHALLENGES: A SPECIAL REFERENCE TO PUNJAB

The Micro Small and Medium enterprises (MSMEs)have beenplaying significant role in Indian economy for a very long period. MSMEs, by their very nature, have been characterized by choice of labour intensive techniques, therebygenerating huge employment – as per quick estimates of 4th All India Census of MSMEs covering 26 million enterprises, 60 million persons got gainful employment11. In India majority of the workforce are less skilled or unskilled, which are not fit for the modern industry, but they get employment in small enterprises, because it require simple training to operate machines and other activities. India has been a capital scarce country. Capital-labour ratio in the MSMEs being much lower than the large scale industries, the MSMEs are able to generate more employment with the limited resources in the economy.The MSMEs contribute 8 percent of the country‘s GDP, 45 percent of the manufactured output and 40 percent of exports12