Consideration of Decision Measures for Sustainability in MSMES of Industry

Abstract

In many developed and developing countries, MSME has been seen as a driver of economic progress and
social development. Micro, Small, and Medium Enterprises(MSMEs) play an important role in the Indian
economy, contributing significantly to economic growth and job creation. It accounts for 45 percent of
the country's manufacturing production, 40 percent of exports, and 8% of GDP. More than 60 million
people are employed because of it. The rise of the MSME sector was sparked by deliberate developmental
support from various central ministries and departments. It is estimated that 70% of the total industrial
pollution of India is attributed to MSMEs (Working Group Paper, Planning Commission, Twelfth Five
Year Plan), “India: Strengthening Institutions for Sustainable Growth, Country Environment Analysis”,
World Bank, December 2006). The pollution per enterprise of production is higher in select industrial
MSME sectors that of the corresponding large enterprises partly due to the use of obsolete technologies
and poor management practices, and partly because many of the enterprises escape regulatory ambit
(Publication of FMC, “Mapping Energy, Environment and Social Issues among MSME Clusters in
India”, 2009). The purpose of this paper is to analyses manufacturing flexibility measures for
sustainability of small and medium-sized enterprises (SMEs) and enormous firms in India.