INTRODUCTION:

India's tribal population, constituting around 8.6% of the total population, has historically remained marginalized in the country’s development discourse. Chhattisgarh, with a significant Scheduled Tribe (ST) population, presents a unique case for inclusive growth through local entrepreneurship. In line with Sardar Vallabhbhai Patel’s vision of national integration and rural development, the focus on promoting tribal entrepreneurship through MSMEs becomes a critical strategy. MSMEs, as engines of economic development, offer a sustainable pathway for integrating tribal populations into the mainstream economy without eroding their cultural identity.

Sardar Vallabhbhai Patel, the iron man of India missioned a picture of united and self-reliant nation where every citizen irrespective of their background have opportunity to play a part in country’s prosperity. He advocated for self-sufficiency in rural India through cooperative movement and local Industry which laid the groundwork for inclusive economic growth. MSMEs serve a similar purpose by generating employment in rural and semi-urban areas and reducing urban migration, favouring decentralised development model, encouraging local entrepreneurs, and promoting grassroot innovation. MSME foster economic inclusivity by enabling marginalised groups to participate in mainstream economic activity. They reduce income inequality and offer equal economic opportunities for small business owners across regions and communities.

In India, MSME significantly support the economy. It contributes around 30% of country’s GDP, 45% of exports and provides employment to around 111 million people (2025). After agriculture it is second largest employment providing sector and also constitutes nearly half of nation’s export. Chhattisgarh’s economy is remarkably shaped by MSME as they constitute 20.25% to the states GSDP. Leading sectors include Steel, agro-processing, handloom and handicrafts. Government of Chhattisgarh encourages MSMEs through various programmes like Mukhyamantri Yuwa Swarojgar Yojana, Industrial Policy of Chhattisgarh and through centrally operated scheme like Prime Minister Employment Generation Programmes, Pradhan Mantri Mudra Yojana (PMMY) and targeted schemes for tribal upliftment Pradhan Mantri Van Dhan Yojana.

Evolution of MSME Sector since Independence:

Year	Steps taken	Economic Impact
Post -Independent Period (1947-1965)	· Encouraged economic integration through local and small Industries. · Promoted job creation through village and cottage industries.	· Contributes around 10- 12% of GDP. · Khadi and Village Industries Commission (KVIC) was formed in 1956.
Economic Growth Period (1965-1990)	· Industrial Policy Resolution that reserved products for small Industries. · Established District Industries Centre (DICs)	· Contributes around 15- 17% of GDP. · Big source of employment and Regional Rural development in India.
Liberalisation and Reform Era (1991-2006)	· MSMEs competed with globalisation and Liberalisation.	· Contributes around20-25% of GDP · Faced lack of credit and modern and technological support.
Digital Transformation Period (2006-2019)	· Technological shift to digitalisation and startup Ecosystem · “Ease of Doing Business” through initiatives like Udyog Adhar, Make in India, Skill India.	· Contributes around 28- 30% of GDP. · Employed around 110 million people.
Post Covid Atma Nirbhar Bharat (Present)	· Revised definition of MSME based on Turnover and Investment. · Increased focus on exports digital transformation and global competitiveness.	· Contributes around ~30% of India’s GDP. · Accounts for 45% of exports and produces most of manufacturing output.

The sector evolved to structured and technology – based export-oriented sector from Informal small-scale Industries. Sardar Patel’s mission continues to inspire India’s Small-Scale Industries and play key role in Indian Development.

LITERATURE REVIEW:

· Nanda and Kumar (2023) - This study reviews the critical role of MSMEs in India’s economic growth and explores the challenges they face, including financial, technological, and administrative barriers. It evaluates existing literature and government policies aimed at MSME development. The review emphasizes the need for policy effectiveness, better implementation, and support mechanisms to enhance MSME competitiveness and sustainability in a globalized market.

· Singh R (2024) - Existing literature emphasizes MSMEs' critical role in economic development, employment generation, and industrial diversification. Studies identify key challenges including limited financing and knowledge gaps. Researchers suggest enhancing credit access, innovation, and policy support. Government schemes such as PMEGP, MUDRA, and CLCSS aim to bridge financial and technological deficits, fostering MSME growth and sustainability in dynamic markets

· Ganguly S (2023) - The literature review discusses how MSMEs are vital to India’s economy, especially in employment and innovation. However, they face challenges like limited finance, poor infrastructure, and weak market linkages. Scholars highlight the need for better policy frameworks, financial inclusion, technological upgrades, and targeted government schemes to boost resilience, sustainability, and competitiveness, especially post-COVID-19 disruptions.

· Mukhija, Munjal et.al (2017) - The literature review highlights the pivotal role of MSMEs in India's economy, contributing significantly to GDP, exports, and employment. It discusses government initiatives like PMEGP, SFURTI, and Udyog Aadhaar aimed at financial, technical, and marketing support. Despite these, MSMEs face challenges such as limited credit, outdated technology, and poor infrastructure, necessitating targeted reforms for sustainable development.

· Sahuand Baral (2024) - The literature emphasizes tribal women’s entrepreneurial roles in socio-economic upliftment. Studies highlight barriers like limited funding, low education, and market inaccessibility. Government schemes and training programs offer

critical support. Prior research reveals positive impacts of entrepreneurship on empowerment, yet regional studies, especially in Chhattisgarh, are limited— necessitating focused investigation on tribal women’s development through entrepreneurship.

· Mohanty and Panda (2024) - The literature emphasizes the vital role of indigenous knowledge in empowering microentrepreneurs in Chhattisgarh. It highlights traditional skills, community networks, and sustainable practices as foundational for rural entrepreneurship. Scholar stress integrating local knowledge with modern strategies, addressing systemic barriers like market access and policy neglect, and promoting inclusive growth through culturally rooted, eco-conscious entrepreneurial models.

· Chaturvedi and Gupta (2021) - The literature underscores MSMEs' crucial role in economic and employment growth, especially in tribal areas. Studies reveal challenges like poor infrastructure, limited education, and financial constraints hindering tribal entrepreneurship. Authors emphasize policy interventions, knowledge access, and technological support. Empowering tribal communities through targeted MSME initiatives can foster inclusive growth and sustainable development across India’s rural and marginalized sectors.

OBJECTIVES OF THE STUDY:

1. To examine the role of MSMEs in the economic empowerment of Scheduled Tribes in Chhattisgarh.

2. To identify the traditional skills and resources among tribal communities that can be leveraged through MSMEs.

3. To analyse policy interventions, skill development initiatives, and access to finance for tribal entrepreneurs.

RESEARCH METHODOLOGY:

This study uses Descriptive and Analytical Research design, depending primarily on Secondary data sources. These data have been collected from Government Reports, Policy Documents, annual reports of Ministry of MSME and Scholarly Articles on Tribal Entrepreneurship and Rural Development. Additional information was sourced from database like Udyam Registration, TRIFED Reports and Statistical records of state of Chhattisgarh.

The geographical focus is on tribal-majority districts of Chhattisgarh, where Scheduled Tribes constitute a significant share of the population. A qualitative approach has been adopted to understand traditional knowledge, indigenous practices, and the socio-cultural aspects shaping tribal entrepreneurship. At the same time, a quantitative approach has been employed to examine patterns in MSME registrations, participation across categories, and contributions of different sectors.

LIMITATIONS:

The study is limited by its dependence on secondary data, which may not fully capture on- ground realities such as informal enterprises or unregistered tribal units. However, by integrating statistical evidence with contextual analysis, the research provides a comprehensive understanding of how MSMEs function as instruments of empowerment among Scheduled Tribes in Chhattisgarh.

ROLE OF MSMES IN TRIBAL DEVELOPMENT OF CHHATTISGARH:

Chhattisgarh exhibits a substantial indigenous tribal demography, as Schedule Tribe comprises roughly 30.62% of state’s total inhabitants. These tribal communities possess unique skills in traditional crafts, forest-based livelihoods, and indigenous farming practices. In this context, the development of Micro, Small, and Medium Enterprises (MSMEs) offers a transformative opportunity for economic empowerment and inclusive growth. MSMEs can play a vital role in harnessing local resources, promoting traditional knowledge, and creating sustainable livelihoods within tribal regions. By supporting sectors such as handicrafts, agro-processing, and forest produce-based enterprises, MSMEs not only strengthen the rural economy but also help preserve tribal identity and culture. With appropriate policy support, skill development, and access to markets and finance, MSMEs can become a powerful engine of socio-economic progress for tribal communities in Chhattisgarh.

MSMEs serve as catalysts for tribal empowerment by:

· Providing employment opportunities within local ecosystems.

· Enabling commercialization of traditional skills like bamboo craft, Kosa silk, iron craft, and wood carving.

· Facilitating women’s participation in economic activities.

· Reducing dependence on forest-based subsistence and wage migration.

These enterprises also help bring essential infrastructure to underserved areas, encouraging overall rural development.

TRADITIONAL SKILLS AND RESOURCE UTILIZATION:

Tribal communities in Chhattisgarh possess rich heritage in: Handicrafts: Bell metal, terracotta, and woodwork. Handlooms: Kosa silk and tribal weaving patterns. Agro-based Skills: Organic farming, minor forest produce processing (e.g., tamarind, mahua, lac). MSMEs help in formalizing these economic activities, improving market access and income generation.

The Socio-Economic repercussions of MSME in Tribal Domains particularly in Chhattisgarh are multi-faceted and notably pronounced-

· Employment Generation: By direct job creation in manufacturing and services, especially in regions lacking access to formal employment opportunities. This fosters inclusive work force demographics by engaging women, youth and tribal artisans there by reducing rural to urban migration.

· Income Enhancement: MSME enables tribal households to procure consistent income. The value addition process generated through processing minor forest produce escalates income level when compared to raw selling. Increase in income allows families to invest in education and healthcare.

· Indigenous Skill and Preservation of Tribal culture: MSME involved in handicrafts, handlooms production and traditional art form like (i) Dhokra metal casting (bastar) (ii) Bamboo and cane crafts (Kanker) not only cates eyes of the world but also can be commercialised through MEMEs. It also encourages entrepreneurship growth among tribal individuals.

· Infrastructure Development Ancillary Growth: MSME creates Demand for transporting, warehousingand communication, indirectly boosting infrastructure in remote areas.

· Women Empowerment: MSME led by women Enhance gender equality by fostering economic independence and self-reliance.

GOVERNMENT INITIATIVES AND POLICY FRAMEWORK:

Several central and state-level schemes support MSME growth among STs:

Stand-Up India Scheme

Tribal Sub-Plan (TSP)

MSME Sambandh and Sampark

Chhattisgarh Industrial Policy

Skill development through Kaushal Vikas Yojana, TRIFED, and Chhattisgarh State Skill Development Authority (CSSDA).

Despite these initiatives, challenges remain in awareness, accessibility, and capacity building among ST entrepreneurs.

DATA ANALYSIS AND INTERPRETATION:

Chhattisgarh Social Category-wise MSME Distribution

According to Udyam Registration Portal there are 101979 MSME Registered in Chhattisgarh, the majority of MSMEs in Chhattisgarh are owned by individuals from the General category (53,509), forming over 52% of the total MSMEs. The OBC category follows with 36,471 MSMEs, which is approximately 35.76% of the total. SC entrepreneurs own 7,183 MSMEs, around 7.04% of the total. There are 4,662 ST-owned MSMEs, accounting for about 4.57% of the total. This is relatively low given Chhattisgarh's significant tribal population, indicating underrepresentation.

1(a) Table showing Category-wise MSME Distribution in Chhattisgarh

Category	No. of MSMEs	Percentage
GEN	53509	52.5%
OBC	36471	35.8%
SC	7183	7%
ST	4662	4.6%
Unidentified	154	0.2%
Total	101979	100%

Source: Udyam Registration Publication 2020-2022, Ministry of MSME (Govt. of India)

1(b)Pie Chart showing Percentage Distribution of Category MSME in Chhattisgarh Category-wise

Quarter-wise Trends of Number of MSMEs

The Following Table offer detailed Break-down of Micro Small and Medium Enterprise in Chhattisgarh classified by Social Category. The table highlights key trends in Number of MSMEs from 2020 to march 2022.

2(a)Quarter-wise MSME by Social Sector

Quarter	Micro				Small				Medium
	GEN	SC	ST	OBC	GEN	SC	ST	OBC	GEN	SC	ST	OBC
01.07.2020-30.09.2020	2622	411	214	1833	327	2	3	12	73	0	0	1
01.10.2020-31.12.2020	4911	683	403	3244	772	3	0	58	132	0	1	1
01.01.2021- 31.03.2021	7880	1140	736	6284	970	5	4	59	159	0	0	2
01.04.2021- 30.06.2021	4467	589	318	2868	537	2	3	43	39	0	0	1
01.07.2021- 30.09.2021	8123	1114	582	5510	763	3	11	54	86	0	0	1
01.10.2021- 31.12.2021	9057	1387	1004	7359	790	3	10	42	53	0	0	0
01.01.2022- 31.03.2022	11011	1834	1361	9044	700	7	12	55	37	0	0	0

In Chhattisgarh, micro enterprises consistently outshine small and medium enterprises across every quarter and all social backgrounds. The Table indicates that the primary entrepreneurial activity within the ST community in Chhattisgarh is concentrated in very small-scale businesses. Among micro enterprises, the OBC and General categories tend to hold a significant share, indicating a strong entrepreneurial foundation within these communities whereas we move from Micro to Small and then to Medium enterprises, the number of ST entrepreneurs tends to decline significantly, implying difficulties or limited opportunities for ST-owned businesses to scale up to larger company sizes. The "Medium" category often sees very few ST entrepreneurs frequently none or just a handful across different quarters, suggesting a significant opportunity for support that could help their businesses thrive.

2(b)Bar Chart showing the trends of increasing number of MSMEs

CHALLENGES FACED BY TRIBAL MSMES

· Lack of Infrastructure: Inadequate infrastructure in remote tribal areas. Many scheduled areas suffer from insufficient infrastructure such as roads, electricity and Internet access which poses a barrier to industrial development.

· Access to Finances: Limited access to formal credit and banking. Entrepreneurs very often struggle to access credit because of inadequate collateral and limited availability of banking services.

· Lack of Skills: Targeted skill development programs are essential to equip the tribal workforce with the entrepreneurial and technical and digital skills required for growth and self-reliance.

· Market Access: Remoteness and lack of effective branding make it challenging for tribal communities to access national and international markets.

· Cultural Barriers: Including languages and communication gaps, hinder effective participation in govt. schemes.

· Lack of Knowledge: Lack of formal education in business management, marketing and accounting leads to unproductive expenditure and incompetency.

CONCLUSION:

MSMEs among Scheduled Tribes in Chhattisgarh serve as an effective tool for fostering inclusive growth by bridging socio-economic disparities and nurturing local talent. While the region is endowed with natural and human resources, sustained efforts in policy implementation, financial inclusion, financial literacy, skill training, and infrastructure support are essential to unlock its full potential and must needed to provide assistance in brand building and marketing. Promoting tribal entrepreneurship through MSMEs aligns with India's broader development goals of equity, self-reliance, and cultural preservation.

While MSME development in CG’s scheduled areas faces significant challenges, but with collaborative efforts from govt., civil society and private sectors these enterprises can become powerful drivers of inclusive growth. Key areas such as infrastructure development, financial accessibility and skill building must be prioritized to build a thriving ecosystem for MSMEs.

MSME operated by Scheduled Tribes not only stimulates local economies but also plays a vital role in preserving indigenous traditions and promoting social equity. They offer employment, raise living standards and strengthen the community. However, for these benefits to be fully realized, consistent policy, financial support and access to modern tools and markets are crucial.

Building on Sardar Patel’s vision of unity, MSME in tribal areas support broader national goals of self-sufficiency and cohesion. Patel believed in empowering local communities and developing grassroots leaders. This approach helps build a financially strong, yet socially inclusive India by leveraging focused strategies such as schemes, mentorship, digital tools and market connections. This will realise vision of an “Aatma Nirbhar Bharat” honouring the legacy of Sardar Patel who championed unity, Self-reliance and equitable development.

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Received on 17.07.2025 Revised on 12.09.2025

Accepted on 08.10.2025 Published on 10.12.2025

Available online from December 26, 2025

International Journal of Technology. 2025; 15(2):62-68.

DOI: 10.52711/2231-3915.2025.00012

This work is licensed under a Creative Commons Attribution-NonCommercial-ShareAlike 4.0 International License. Creative Commons License.

Anshu Vishwakarma1, Raj Laxmi Ghosh1, Sunil Kumar Kumeti2*