ABSTRACT:MSME (Micro, Small ,Medium, Enterprises) are the heart

ABSTRACT:MSME (Micro, Small ,Medium, Enterprises) are the heart of Indian Industry. Their contribution especially to a developing country like India is valuable. They not only really contribute in generating employment but also encourage low skilled level workers to start as entrepreneur level in rural areas. Women entrepreneurial activities are not only a means for economic survival but also have positive repercussion for the women themselves MSME’s have the capacity to adjust with the changing environment as a whole. It serves fruitful to the economic welfare of the country. Despite some infrastructural deficiencies and challenges like flow of institutional credit and inadequate market linkages. Some aspects are elevated in the paper, such as the role and importance of the credit flow to MSME sector for the economic growth and development and the role that banks can play in developing the MSME sector in India.KEYWORDS: inadequate market, infrastructural deficiencies, institutional credit.INTRODUCTION:        Micro, small and medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of Indian economy over the last five decades.  MSME contribute nearly 8 % of country’s GDP , 45% of manufacturing output and 40% of exports.  They provide largest share of employment after agriculture.  In Indianmarket ,MSME’s rapid growth would be seen as Indian  Entrepreneurs are making remarkable in various Industries like pharmaceutical, Agro, Food processing etc. In accordance with the provision of MSMED act 2006, these enterprises are classified into : Manufacturing and service enterprises .In India , MSEME’s contributions are highly remarkable in the overall industrial economy of country.              PROVIDES JOB OPPORTUNTIES:The Indian MSME sector provides maximum opportunities for both self employment and wage employment outside agricultural sector & contributes in building an inclusive and sustainable society in innumerable ways through creation of non-farm livelihood at low cost, balanced regional development , gender& social balance. As we seen earlier ,  The MSME sector holds second position in employment generation after Agriculture.There are huge opportunities for the MSME’s to grow as a ancillary industries to unleash greater industrial growth.                           Development of this sector is therefore extremely important as it holds the key to inclusive growth and plays a pivotal role in holistic development of the country.The roadmap for MSME development should include a target for increase in the share of their contribution for their contribution from the present 8% to 15% by 2020. MSME’s being less capital intensive and more  employment-friendly.PERFORMANCE OF MSME SECTOR IN INDIA: The growth and development of MSME sector in our country has been consistent and remarkable over the preceeding decades.SL.NO YEAR TOTAL WORKING ENTERPRISE(in lakhs) EMPLOYMENT MARKET VALUE OF FIXED ASSET1 2006-07 361.71 805.23 868,543.792 2007-08 377.36 842.00 920,459.843 2008-09 393.7 880.84 977,114.724 2009-10 410.8 921.79 1038,546.645 2010-11 428.73 965.15 1105,934.096 2011-12 447.64 1011.69 1182,757.647 2012-13 447.54 1061.4 1268,763.678 2013-14 448.46 1114.29 1363,700.549 2014-15 510.57 1171.32 1471992.94                                          EMPLOYMENT & INVESTMENTS                       SOURCES:  Annual report 2015-16 ,GOI, Ministry of MSME.SUGGESTIONS TO IMPROVE THE PERFORMANCE OF MSME’s:1) Easy access to Finance & credit.2) Stepping up Infrastructural and Support facilities.3) Creation of adequate MARKETING LINKAGES>4) Policy Intervention and support mechanisms.5) Skill Development and Capacity building.6) Access to modern tools and Technology.SL.NO YEAR GROSS VALUE OF OUTPUT OF MSME IN MANUFACTURING SECTOR(in crores) MANUFACTURING SECTOR(MSME) SERVICE SECTOR (MSME) TOTAL1 2006-07 1198818 7.73 27.40 35.132 2007-08 1322777 7.81 27.60 35.413 2008-09 1375589 7.52 28.60 36.124 2009-10 1488343 7.45 28.60 36.055 2010-11 1653622 7.39 29.30 36.696 2011-12 1788584 7.27 30.70 37.747 2012-13 1809976 7.04 30.50 37.54CONTRIBUTION OF MANUFACTURING OUTPUT OF MSME IN GDP.SOURCES : ANNUAL REPORT 2014-15 ,GOI , MINISTRY OF MSME.ROLE OF WOMEN IN MSME’s:Today, Indian women are breaking stereotypes & moving away from traditional roles & corporate profiles to turn entrepreneurs. The following are the main challenges that women entrepreneurs are facing:1) Difficulty in obtaining loan from commercial banks.2) Failure of business / bankruptcy.3) Failure to convert profit back into investment.4) Shortage of technical skills.5) Poor managerial skills.6) Low level of education.  The GOI has been taking several measures for welfare , upliftment , & empowerment of women. Women’s productive activities, particularly in industry, empower them economically & enable them to contribute more to overall development. Women’s entrepreneurial activities are not only a means for economic survival but also have positive social repercussions for the women themselves