Topic: Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.
3. Examine as to why despite high growth rate and good prospects, the MSMEs have faced certain constraints that have obstructed its way of achieving its true potential. (250 words)
Difficulty level: Easy
Why the question: The question is part of the static syllabus of General studies paper – 3 and mentioned as part of Mission-2022 Secure timetable.
Key Demand of the question: To write about the various constraints affecting the growth rate of MSMEs and suggest measures to overcome them.
Examine – When asked to ‘Examine’, we must investigate the topic (content words) in detail, inspect it, investigate it and establish the key facts and issues related to the topic in question. While doing so we should explain why these facts and issues are important and their implications.
Structure of the answer:
measures to overcome them.
Begin by giving factual status of proportion of MSME vis-à-vis the population dependent on it.
Elaborate upon the importance of MSMEs in socio-economic development of the country. GDP growth, Job creation, exports and entrepreneurship etc.
Mention about the challenges of the MSMEs such as Technological backwardness, High cost of credit, Procurement of raw materials, Inadequate infrastructure facilities, Lack of skilled manpower and Lack of skilled manpower etc.
Mention the steps that are needed to address the above issues.
Conclude by writing a way forward and summarising the overall impact of MSMEs in socio-economic development of India.