The Micro, Small & Medium Enterprises (MSME) sector is a critical component of India’s growth story, making significant contributions to GDP, employment and exports. As per the Ministry of MSME’s Annual Report for 2013-14, MSMEs account for nearly 40% of India’s exports and also contribute significantly to the generation of employment in the country, employing nearly 80-100 million people. The 3.61 crore (MSMEs), contributing 37.5 per cent of the country’s GDP, have a critical role in boosting industrial growth and ensuring the success of the Make in India programme. A number of schemes are being implemented for the establishment of new MSMEs and growth and development of existing ones. In the MSME context, finance encompasses equity capital, loans for fixed asset investment and working capital for meeting cash flow gaps. Several policy, regulatory & institutional initiatives have been taken to promote availability of finance to MSMEs. These include, among others, credit support mechanisms administered by government institutions. Realising the potential of the MSME sector will require significant efforts even in areas other than access to finance, including infrastructure, skill development, technical & managerial capacity building, alignment of goals of industrial research institutions, ease of doing business and simplification of laws, rules & procedures. This paper analyzes important aspects and closely linked issues to enhance the contribution of this sector in the formal economy.