Government Interventions for MSME Growth in the North-Eastern Region: A Way Forward

Minto Ete, Prof. Dr. Prakash Divakaran, Dr. Nyarik Geyi

Vol. 20, Issue 1, Jul-Dec 2025

Abstract:

Micro, small, and medium-sized enterprises (MSMEs) play a significant role in India's gross domestic product (GDP), exports, employment, and equitable regional development. Problems with infrastructure, limited access to capital, outdated technology, weak market links, low levels of knowledge, and many more are just a few of the obstacles this region must overcome to engage in any kind of economic activity. Examining the roles played by the Central and State levels of government, significant implementation gaps, and potential development paths, this article critically evaluates government initiatives in India's North-Eastern Region (NER) that seek to promote Micro, Small and Medium Enterprises (MSMEs). In order to shed light on the ongoing problems that hinder the growth of micro, small, and medium-sized enterprises (MSMEs) in the NER, the study combines national MSME schemes (such as credit guarantee, cluster development, technology and skill upgradation, and market access) with NER-specific initiatives and funding interventions. This paper proposes a mixed approach to achieving policy goals, drawing on findings from recent regional analyses and a review of relevant policies. This approach would involve investing in specific infrastructure, implementing interventions based on value chains in clusters, strengthening the last-mile delivery of central schemes, building capacity according to local value chains, and improving coordination between state and centre. Sustaining this upward trend will need targeted policies and ongoing investment in order to foster equitable development in the NER.

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