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Abstract
Micro, small and medium enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian Economy over the last five decades. MSMEs not only play crucialrole in providing large employment opportunities at comparatively lower capital cost than large Industries but also help industrialization of rural and backward areas, thereby reducing regional imbalances, assuring more equitable distribution of national income and wealth. MSMEs are complementary to large industries as ancillary units and this sector contributes enormously to the socioeconomic development of the country. The government in its budget normally emphasizes on the contribution of the small and medium scale enterprises. The role of small scale industries (SSI) has always been supported in a country like India with various opinions such as employment equality, latent resources, trickling effect, insurance against social tension, distributive effect, creation of social ecosystem and decentralization etc. The other arguments in favour of small scale industries are making provision for self-employment and capital formation and they are skill light, import light and quick yielding.