Contribution of MSMEs to Entrepreneurial Development and National Growth in India: A Comprehensive Analysis (2018–2023)

Abstract

The Micro, Small, and Medium Enterprises (MSME) sector serves as the vanguard of India’s economic aspirations, acting as a catalyst for employment, innovation, and regional development. This research paper evaluates the contribution of MSMEs to India’s national growth and entrepreneurial landscape from 2018 to 2023. By analysing Gross Value Added (GVA), export shares, and registration data from the Udyam portal, the study identifies a "Resilient Rebound" following the COVID-19 pandemic. The findings indicate that while MSMEs contribute approximately 30% to the GDP, their most significant socioeconomic impact is in bridging the rural-urban divide. The paper discusses the transition from informal to formal entrepreneurship and concludes with a framework for achieving the $5 trillion economy goal through MSME empowerment.