Role of Government Subsidies on the Growth of MSMEs

MSME sector is the growth engine of an economy. A great importance has been given to the sector for industrialization of India as industrialization plays most prominent role in economic growth. Since Independence our government is continuously trying to boost the sector by providing all possible help and support. Support includes subsidies, incentives, grants and assistance whether direct or indirect, financial or non financial, big or small and at all stages of life cycle of an enterprise to encourage entrepreneurs to come ahead. It is equally important to evaluate these measures from time to time to know whether they have achieved the pre-determined goals. Subsidy is very important measure among others. As it is government expenditure granted from public funds in the public interest. That's why success of subsidy program is very important and henceforth its timely evaluation.The present study is carried out to determine the answers to the questions like whether the various subsidy schemes implemented by the central government has become successful?,whether the targeted section has obtained the provided benefits?.

Autorentext

The primary objective of this study is to measure the impact of Central GovernmentSubsidy schemes (Schemes of Ministry of MSME) like Credit Guarantee Fund for Micro and Small Enterprises (CGTMSE), Prime Minister Employment Generation Programme (PMEGP) and Credit Linked Capital Subsidy Scheme (CLCSS) on the growth of MSMEs of Indore District.