Effect of sustainable leadership development and employee empowerment in the MSME industry in India

In the 21st Century, India's micro, small, and medium enterprises (MSME) have mass employment and contributed to around 30% of India's GDP in 2020. As of 2020, India has a house of 2.5 million units and is the backbone of large sectors such as manufacturing, agriculture, aviation, IT & ITeS, pharma, cement, and automobiles. India Government initiatives helped MSME to grow at the rate of 18.5% CAGR in 2019-2020. Indian Government is committed to bringing sustainable growth to the MSME sector. This brings the point to look into scalability issues often faced by these industries due to the typical owner and employee organization structure and the lack of knowledge of recent HR practices. All the management and operational decisions are factored into top leadership (the business owner and his sons). With the young entrepreneurs stepping into the family business, the face of this industry is bound to change further. Indian Government has doubled the budget for the MSME sector in FY22 from $ 1.03 billion in FY21 to $ 2.14 billion in FY22. With the Industrial Revolution 5.0, India has witnessed multiple unicorns in the last decade, and they are bound to see maturity in leadership sustainability and focus on employee empowerment. The study aims to look into labor law barriers faced by those not covered in the FY22 vision document for adopting to meet 5 trillion dollar business demands by 2025.