Q.State the role of MSME in development of a country.

MSMEs hold a distinct place in India's economy because of the specific ways they contribute to the country's socio-economic development. …

MSMEs occupy a distinct position because of their contribution to socio-economic development:

• Employment generation — They are the second largest employers after agriculture and generate more employment per unit of capital, being labour-intensive — a boon for a labour-surplus country.
• Balanced regional development — Making up about 95% of industrial units, they spread industry across regions, including rural and backward areas, and check migration of rural people to cities.
• Reduces income inequalities — By dispersing industry and building linkages with other sectors, they help narrow income gaps.
• Opportunity for entrepreneurship — They let latent skills become businesses with little capital and almost no formalities.
• Enormous variety of products — From mass-consumption goods to sophisticated items and export-valued handlooms and handicrafts. …