V3I6P12

A Study on Backbone of the Economy: How SMEs Drive India’s Growth Engine

Rakesh M^1*, Dr. S. Onyx Samraj²

Abstract

Small and Medium Enterprises (SMEs) play a pivotal role in shaping India’s economic landscape. Often regarded as the backbone of the economy, SMEs contribute significantly to employment generation, industrial output, exports, and innovation. This article explores the multifaceted contributions of SMEs to India’s growth, examines the challenges they face, and highlights the role of government initiatives in strengthening the sector. The study emphasizes that sustained policy support, digital transformation, and financial inclusion are key to unlocking the full potential of SMEs in India.

Keywords:

SMEs, Economic Growth, Employment, MSME Sector, Digital Transformation, India