2025, Vol. 7, Issue 10, Part C

Author(s): Anjana Nagpal

Abstract: The Micro, Small and Medium Enterprises (MSME) sector forms the backbone of India’s industrial and employment structure, demonstrating a nearly balanced rural-urban distribution but marked by disparities in scale, productivity, and gender participation. Using data from the MSME Annual Reports (2022-23; 2023-24) and related policy studies, this paper analyses the spatial and gender dynamics shaping the sector. Rural MSMEs account for 51% of total enterprises yet employ fewer workers (45%), reflecting their predominantly micro, informal, and subsistence-oriented nature. In contrast, urban MSMEs, supported by better infrastructure, market access, and financial linkages, generate 55% of employment and show greater diversification across enterprise sizes. Gender-wise analysis reveals persistent inequality-women own only 20.37% of MSMEs and constitute 24% of the workforce, with higher representation in rural micro units. Structural barrier, including limited access to credit, skills, and market, combined with social norms and safety concerns, constrain women’s participation, particularly in urban areas. The study underscores the dual character of the MSME ecosystem. The rural enterprises act as instruments of livelihood resilience and urban ones as engines of growth. It concludes that region-specific, gender-responsive policies focusing on infrastructure, credit, and digital empowerment are critical for achieving inclusive and balanced MSME development in India.

DOI: 10.33545/27068919.2025.v7.i10c.1732

Pages: 210-214 | Views: 53 | Downloads: 22

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