Industrialization has been recognized as tantamount to economic development. The gap in per capita income between the developed and under developed countries is usually attributed to the disparities in the structure of their economies where the developed countries are largely industrial economies, while the less developed countries are confined predominantly to agriculture. Micro, Small and Medium Enterprises (MSME) sector has been emerged as a highly vibrant and dynamic sector of the Indian economy over the last seven decades. MSMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural & backward areas, thereby, reducing regional imbalances, assuring' more equitable distribution of national income and wealth. MSMEs are complementary to large industries as ancillary units and this sector contributes enormously to the socio-economic development of the country.  The present research paper focused on employment generation of MSMEs in the selected areas of Telangana state.

KEYWORDS: MSME, Industrialization, Reducing Regional Imbalances, Socio-Economic Development.