Technology, demand and innovation capability of Indian MSMEs

Abstract

The Micro, Small and Medium enterprises (MSMEs) today constitute a very important segment of the Indian economy. The growth of this sector came about largely due to the vision of Government policies framed right after Indian Independence. MSME sector has emerged as an energetic and vibrant sector of the economy. As per the fourth census of MSMEs report published in 2012, the total numbers of MSMEs in India are 36 million employing over 80 million people. It is the second largest employer after agriculture accounting for 72% services and 28% manufacturing jobs. It also accounts for 45 % of total industrial production, 40% of total exports and contributes very significantly to the GDP. Manufacturing segment within the MSME contributes to 7.09% of GDP. The benefits of MSMEs have created a special status and importance in the Five-Year Plans right from its inception. In recent years, the MSME sector has consistent higher growth rate compared to the overall industrial sector. Despite its commendable contribution to the country's economy, MSME Sector is not getting the required support and faces numerous dilemmas. This is a research paper which aims at developing a framework taking into account efficient demand marketing and innovation strategy performances. The paper also presents the results of the pilot study undertaken. � 2019 PICMET.