An Evaluation on How Recession and Inflation Has Affected MSME's&The Measures Taken by MSME's&The Government for Its Sustainability

MSMEs are one of the most progressive, vibrant and sensitive sectors of the Indian economy with a GDP contribution of around 8 percent and the largest after agriculture in employability. With the introduction of the reform measures in India since 1991, the Govt. has withdrawn many protective policies for the MSMEs and introduced several promotional policies to increase competitiveness of the sector. The current research is an attempt to critically analyze the effect of recession& inflation on MSMEs. This research has analyzed the present status of MSMEs as well as reviewed various governmental policies, challenges and factors that effected the growth of MSMEs. The study thus investigated the performance of the MSMEs sub-sector of the Indian economy during the ongoing period of recession and the ever increasing inflation, its problems and prospects and recommended measures to make the sub-sector virile and vibrant in order to play the crucial role it is expected to play.