A report on MSME's Challenges in India: Insights from Telangana

Over the years, MSME sector has emerged as a highly vibrant and dynamic sector of the Indian economy. MSMEs contribute to approximately 30% of the Country's GDP, 36% of the manufacturing output and 43.6% of exports. MSMEs provide the largest share of employment after agriculture and hence, the development of MSME sector can contribute enormously to the socio-economic development of the country. Recognizing the transformative potential of MSMEs, Telangana has strategically positioned the development of this sector as a catalyst for job creation and regional equilibrium. The MSME sector in Telangana manufactures a variety of products with a high concentration of Micro and Small units belonging in the Sectors of food, mineral and building materials, drugs and pharmaceuticals, fabricated materials, trading and service sector. Telangana has identified development of MSMEs as a catalyst for job creation and balanced regional development.