International Journal of Science, Engineering and TechnologyAuthors: Rote Rekha Atmaram
Abstract: Background: The Micro, Small, and Medium Enterprises (MSME) sector is the backbone of the Indian economy, exercising substantial influence on GDP, employment, and exports. Acknowledging its importance, the Government of India announced a set of policy measures before 2020 to address sector-long issues like restricted access to credit, regulatory complexity, and the informal nature of managing trade. However, substantial heterogeneity persists in the way distinct MSME segments assimilated the effects of these reforms. Objectives: The primary objective of this empirical exercise is to analyze how far central government pre-2020 policies (i.e., MUDRA Yojana, CGTMSE, GST, and cluster development schemes) have impacted MSME growth and commerce management practices across all enterprise size segments and regions. Methods: The research methodology used is qualitative-descriptive with secondary data collection from government reports, policy evaluations, and enterprise surveys. Relevance, efficiency, and institutional effectiveness among national-level schemes were examined in a purposively selected sampling framework. Results: Findings show that medium-sized firms and those located in urban areas were more poised to take advantage of formalization, digital uptake, and organized commercial practices. However, most of the micro and rural enterprises faced problems in accessing policy benefits because of poor digital infrastructure, low scheme awareness, and procedural complexities. Management of trade was partially modernized through compliance with the goods and services tax (GST), inventory control, and the registration of suppliers, but not universally. Conclusion: The article concludes that the pre-2020 policies provided a core basis for MSME support but were impaired by implementation gaps. A less centralised, homogeneous, and capacity-based policy approach is needed to harness the transformative power of the Indian MSME ecosystem.
