The MSME sector is a very important part of the Indian economic system

Dr Chuck A Arize thank you for your contribution to the discussion

Small businesses are backbone of any economy specified with respect to Indian context. Small businesses are now producing a wide range of mass consumption items. Small business serves as an anti-inflationary force by providing goods for daily use on a large scale. Small scale industries contribute to around 40% of the total exports done by India, which forms a significant part of the revenue earned from the exports. Small scale industries work towards increasing the fore reserves of the country that reduces the load on balance of payment of the country. Manufacturing sector is considered the backbone of economic development because: Manufacturing industries not only help in modernizing agriculture, which forms the backbone of our economy, they also reduce the heavy dependence of people on agricultural income by providing them jobs in secondary and tertiary sectors. Small businesses also help to reduce unemployment rates and stimulate economic growth by increasing consumer spending. Small businesses also play a critical role in promoting economic resilience. During economic downturns, large corporations often lay off workers and cut costs to maintain profitability. Minerals are mined with steel equipment. Farm machines are mostly steel. Large buildings have steel framework. Hence the Iron and Steel Industry is referred to as the backbone of modern industry. Small businesses are the backbone of the economy and need to be treated fairly. All too often we forget what constitutes the real backbone of the economy. We owe it to our small businesses the backbone of the economy to ensure they are paid on time. Small businesses help promote entrepreneurship and create a supportive ecosystem for new companies to flourish. According to data from the Ministry of Micro, Small, and Medium Enterprises, small businesses in India employ about 120 million people, about 40% of the country's workforce. Small-scale businesses are, therefore, set up all over the country, many of them providing employment opportunities to people in rural areas. This triggers the redistribution of wealth and income and enables the equitable distribution of income in rural areas. A business which functions on a small scale level involves less capital investment, less number of labour and fewer machines to operate is known as a small business. Small scale Industries or small business are the type of industries that produces goods and services on a small scale. They play a crucial role in creating employment in an economy because they are the main sources of employment for those who live in rural areas. Small scale industries in India contribute significantly to the nation's economy because they produce close to 40% of all goods and services.