CONTRIBUTION OF MSME IN THE PROMOTION OF ENTREPRENEURSHIP AND EMPLOYMENT IN INDIA – A COMPARISON OF PRE AND POST REFORM PERIOD

Micro, Small and Medium Enterprises (MSME) are being the heart of Indian economy and employment. The developing country like India, its contribution is highly inevitable. It provides a platform for innovative, effective and efficient entrepreneurial spirit. In India, it is extremely heterogeneous in the mode of the nature of the industry, size of the enterprises and several of product and service and also the technologies which undertaking wherein. It reduces regional imbalances and also assuring equitable distribution of national income and wealth through industrialization of rural and backward areas. According to Economic Times in June 2013, small scale industry occupies close to 40 percent of India's workforce. After the implementation of New Industrial Policy (NIP) in 1991, small scale industries obtained various changes, challenges and issues which influenced the industry positively and negatively as well. This study attempted to highlight the significant and contribution of MSME in entrepreneurship development and generating the employment opportunities in India before and after the globalization that is from the period of 50 years from 1974-1975 to 2014-2015. During this study period MSME have obtained notably two major reforms. The first reforms popularly known as Liberalization Privatization and Globalization (LPG) implemented in the year of 1990 – 91. In the year of 2006 on October 2, Indian government enacted MSMED Act, 2006 which was another reform of this industry. The study attempts to compare the both reform period to identify the changes and the contribution of MSME in the promotion of entrepreneurship and employment generation.