Survival and Challenges of the MSME Sector in Odisha: Policy Reforms in Vikshit Odisha
Author : Syed Farhan Hyder, Dr. Ramkrushna Mishra and Dr. Biswa Mohana Jena
Abstract :
The Micro, Small, and Medium Enterprises (MSME) sector is a vital driver of Odisha’s economic growth, employment generation, and socio-economic inclusion. As the second-largest employment-generating sector after agriculture, MSMEs contribute significantly to Odisha’s Gross State Domestic Product (GSDP), promote balanced regional development, and support grassroots entrepreneurship. However, despite their immense potential, MSMEs in Odisha face numerous structural and operational challenges. These include limited access to finance, infrastructural bottlenecks, outdated technology, market constraints, and regulatory burdens, which threaten their long-term sustainability and competitiveness.
To address these concerns and transform Odisha into an industrially developed and inclusive economy, the Government of Odisha has launched a series of targeted policy reforms under the vision of ‘Vikshit Odisha.’ The MSME Development Policy 2022, coupled with sector-specific schemes, digital enablement initiatives, and infrastructure development programs, is aimed at revitalizing the MSME ecosystem by ensuring ease of doing business, financial support, market access, skill development, and innovation. This paper critically examines the survival challenges of the MSME sector in Odisha and evaluates the scope and effectiveness of ongoing policy interventions. The study also explores how these reforms can pave the way for Odisha’s transition into a hub of resilient and sustainable MSMEs within the broader national mission of 'Viksit Bharat' by 2047.
This article concludes by emphasizing the need for consistent monitoring, inclusive governance, and adaptive policy-making to ensure that MSMEs play a central role in Odisha’s journey towards economic transformation and social equity.
Keywords :
MSMEs, Vikshit Odisha, entrepreneurship, financial inclusion, economic development, sustainable growth, Viksit Bharat 2047.
