While MSMEs are the backbone of the Indian economy, they encounter various hurdles in their operation and expansion. Discuss. Also, suggest steps to support the growth of the MSMEs.

There are over 6+ million MSMEs operating in India. MSMEs as backbone of economy: i Employ 111 million, 2nd only to Indias exports ii Contribute 46% to indias exports iii Contribute 45% to manufacturing sector and seen as essential to realise target of 25% jump in manufacturing Hurdles facing MSMEs: i Lack of cheap credit due to rise in NPAs, lack of formed credit history ii Poor skilled workforce (Only 5% formally skilled) iii Regulatory closes for approval, expansion promotes dwarfism (Economic survey)