The Micro, Small and Medium Enterprises (MSMEs) of India play a very vital role in the manufacturing output, entrepreneurship promotion, employment generation, export, wealth distribution and economic development of our country. MSMEs create more opportunity for employment after agricultural sectors. It provides employment nearly 110.99 million people. Out 110.99 million people, 49.78 million are from Rural and 61.21 million are from urban areas. On the other hand, about 36.04 million people are from the manufacturing sector, 38.72 million from Trade and 36.23million are from the other service sector. As far as employment is concerned, 84.47 million people are male and 26.49million people are female. The labor-intensive MSME sector is more popular in India than Capital-intensive big Enterprise due to the huge population and shortage of capital formation. The MSME sector also runsa significant role in the development of the Indian economy with a massive network around 63.39million enterprises. The sector provides about 45% of industrial output, more than 40% of exports, over 28% of the GDP, while generating employment about 111 million people.This study reveals the role  of MSMEs in the economic development of India from 2006-07 and onwards.

Keywords: MSME, Employment, Economic, GDP, Capital Formation.