Expensive and time-consuming paperwork, lack of access to financial aid and marketplaces impede the growth of micro enterprises
About 4 crore micro, small and medium enterprises (MSMEs) exist in India, according to the Ministry of Micro, Small, and Medium Enterprises, and contribute about 30 percent to India’s GDP and 45 percent to India’s exports. The Indian government has implemented various policies and schemes over the years to boost the production of MSMEs, aiming to increase its contribution to GDP by up to 50 percent. However, the biggest challenge MSMEs face is scaling up from micro to small and medium enterprises.