Government of India has developed key strategies to promote and support the MSME sector to promote competitiveness, quality upgrading, finance, technology, etc. This has resultedin a dramatic positive change in the sector
India devised a definitive development strategy since Independence for achieving economic growth with self-reliance, social justice and alleviation of poverty. In this strategy, the micro, small and medium enterprise (MSME) sector has been accorded a pivotal role in the industrial resurgence of India. Since the 1950s, India has adopted a conscious policy for promotion and development of MSMEs, in view of their vital role in generation of employment, dispersal of economy and better utilisation of resources. The MSME Development Organisation, was set up in 1954 as an apex body for sustained and organised growth of MSMEs in the country.
In the next two years, the National Small Industries Corporation, the Khadi and Village Industries Commission (KVIC) and the Coir Board were also set up. The promotional and developmental policies provide support in the areas of finance, technology and quality upgradation, marketing and infrastructural support, entrepreneurial development and fiscal incentives to the MSMEs. The policies to encourage the development of micro and small industries, which include khadi, village and artisanal enterprises, is a vital component of the Indian industrial growth.