Review of Micro, Small, and Medium Enterprises (MSMEs) of Arunachal Pradesh

: Micro, Small, and Medium Enterprises (MSMEs) constitute an important segment of the economy in terms of their contribution to generating employment opportunities, industrial production, creation of an entrepreneurship base, and maintaining an appreciable growth rate. The MSME sector has often been termed the engine of growth for developing economies. In Arunachal Pradesh MSME sector has a huge contribution to the economy in terms of providing employment opportunities, promoting equitable economic growth, decreasing regional disparities, and enhancing export potential. Arunachal Pradesh is a tribal economy, and the contribution of MSME to the economy is quite remarkable. This paper evaluates the current scenario of the MSME sector of Arunachal Pradesh and also attempts to focus on the increase in registered MSMEs in the past five-year period. The study is a review that was conducted with the help of secondary data retrieved from MSME Annual Reports, other government reports, newspapers, and research papers.


I. Introduction
The 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. It contributes significantly to the economic and social development of the country by fostering entrepreneurship and generating large employment opportunities at comparatively lower capital costs, next only to agriculture. The Micro, Small, and Medium Enterprises (MSME) sector has grown to be a very vibrant and dynamic sector of the Indian economy over the last few decades. By encouraging entrepreneurship and creating major employment opportunities at a relatively cheap capital cost, it is the second largest contributor to the economic and social development of the nation after agriculture. The MSMEs are widening their domain across sectors of the economy, producing a diverse range of products and services to meet the demands of domestic as well as global markets. The development of MSME is essential in a tribal economy like that of Arunachal Pradesh, which is particularly a subsistence economy. For this industrially backward state of the North Eastern Region, there is an increasing need for healthy MSMEs. It is indispensable to pay more attention to the state's MSME framework and the growth of MSME under the various plans and policies of the governments of India and Arunachal Pradesh. The growth of MSMEs in the state is also equally important to seize the opportunities and create an empowering business environment.
MSMEs play an important role in the present scenario in a context that it provides greater resource use efficiency, capacity for employment generation, technological innovation, promoting inter-sectoral linkages, raising exports, and developing entrepreneurial skills. Their location flexibility is an important advantage in reducing regional imbalances. In addition, there are many economic and sociological factors that make a strong case for advocating a big push for this sector in the present phase of economic growth.

II. Objective
The main objective of this study is to briefly highlight the current scenario of micro, small and medium enterprises in Arunachal Pradesh, and to analyze the growth of micro, small and medium enterprises in Arunachal Pradesh from the period 2015-2020.

III. Methodology
The data are collected mostly from secondary sources by way of access to various Government policies/ programs including published Annual Reports, Journals, Books, and available official websites.   78 manufacturing and service units, it was different. In terms of financial constraints, it was likewise extremely low. The economy has changed significantly since that time. On May 13, 2020, the Aatma Nirbhar Bharat package announced a revision to the MSME classification criteria. This has been done to make business easier to conduct, to establish an objective classification system, and to be realistic with time. There will no difference between the manufacturing and service sectors. The previous classification criterion, which was only based on investment in plant and machinery, has also been updated to include a new turnover criterion. The new standards are anticipated to have several positive effects that will help MSMEs expand. Additionally, it has been agreed that the limits of turnover for any type of MSME units, whether micro, small, or medium, would not include the turnover related to exports. This is yet another step in the direction of ease of doing business.

Concept of Micro Small and Medium Enterprise
Thus, this will help in attracting investments and creating more jobs in the MSME sector.

MSME in Arunachal Pradesh-An Overview
Micro small and medium enterprises form an important sector in the economy of Arunachal Pradesh not only adding to the industrial base but also creating a social order of equality, employment, and justice. The directorate of industries of Arunachal Pradesh has come up with a state-specific industry classification that primarily focuses on those industries the state has 4 types of industries that can be found in the state (Fig.1).
The industries are classified into different categories in different states.  Source: Ministry of MSME, GOI  Pradesh have low capital for investment so it is recommended that the government should make available credit to the MSMEs from various sources. Small enterprises comprise 38.15% which is also a good number whereas medium enterprises constitute only 4.17% of the total MSME registered in the year which is quite low in comparison with the other two enterprises. Arunachal Pradesh has a significant growth potential to develop and strengthen the capacity of MSMEs by using the available resource. The MSMEs have a huge opportunity to expand as supporting industries, which will unleash even more industrial growth. Therefore, the sector's development is crucial since it holds the key to inclusive growth and is essential for the overall development of the district. The MSME sector has the potential to grow and establish itself as the foundation of the Arunachal Pradesh economy.

IV. Conclusion
The MSME sector is characterized by low capital expenditures, operational flexibility, and locational mobility. MSMEs have been playing a significant role in the overall economic development of Arunachal Pradesh through the dispersal of industries into rural, semi-urban, and backward areas. The MSME sector solves the problems of poverty by providing gainful employment opportunities with low investment. To ensure the overall development, the state should work to increase the penetration of MSMEs across all of its districts. Also, the Arunachal Government needs to provide adequate support and take certain measures to allow the MSME to develop to its full potential. Therefore, it is recommended that the government adopt certain new approaches including integrated policy, effective governance, enhance skill development, and accessibility to credit through government agencies particularly to MSMEs, to increase productivity and contribute to the economic growth of the state.