The Small and Medium enterprises play a vital role in the Indian economic structure due to its
significant contribution in terms of output, exports and employment. For a developing nation like
India, where the labour is abundant and capital is scarce, the small sector is a major source of
employment for millions of people. Keeping in view the importance of SMEs, the Indian
government has included this sector in its five-year plans. The SMEs are still hampered by the
problems of finance, marketing and low quality. Taking into account the enormous potential of
the small sector, the entrepreneurs and the policy-makers must act collectively to facilitate growth
in this sector. In this context this paper provides and delineate concerning the momentous role
MSME in India. The paper will also provide some conceptual framework of structural
development of MSMEs in India and also to examine estimation of productivity of small and
medium enterprises on the basis their growth and performance before and after 1999-00 in India.