MSMEs in Uttarakhand’s perform a very important function toward entrepreneurship, employment generation, and regional industrialization. This is instrumental in accelerating the state economy with the MSME functioning in almost all domains, such as manufacturing, handicrafts, tourism, and other agro-based industries. The present study aims to highlight the contribution of MSMEs in speeding up the economic development, their contribution towards socio-economic development, and the policy initiatives that would provide in streamlining their sustainability and competitiveness. The numerous contributions by MSMEs, just like other states, they are faced with innumerable challenges in Uttarakhand. These include but are by no means restricted to access to formal credit, infrastructures, market access, skill deficiency, and regulatory barriers. Many of these businesses are unable to grow due to a lack of financial literacy, low technological process intervention, and entry into bigger supply chains. Various government schemes like the Prime Minister’s Mudra Yojana, Startup India, Make in India, and related state MSME policies have given these entrepreneurs much-needed support.
This research is based on secondary data. The review of MSME policy documentation examined in great depth describes gap areas in existing MSME policy frameworks that need to be addressed for creating a stronger business environment. It also discusses certain other practices in different regions and countries that may assist in formulating policy recommendations aiding in the potential empowerment of Uttarakhand MSMEs. Through the aforementioned factors to the various challenges posed, targeted policy interventions should also enhance the financial inclusion, technological upgrading, and infrastructure of MSMEs so that they can directly contribute to economic growth and employment generation in Uttarakhand. In this context, this research offers much useful information for the policymakers, industrialists, stakeholders, and entrepreneurs on methods of developing and strengthening a resilient and competitive MSME sector in the region