Micro, small and medium enterprises (MSMEs) have emerged as a highly vibrant and dynamic sector of the Indian economy over the years. The present work analytically explains the functioning of MSMEs in India. It examines the problems faced by MSMEs and details the policies and programmes of the Government of India to promote this crucial sector of the Indian economy. According to the Annual Report, 2022-23 of the Ministry of Micro, Small and Medium Enterprises, Government of India, there were 633.88 lakh micro, small and medium enterprises (MSMEs) in the country, engaged in different economic activities.