Small and medium enterprises make a significant contribution to the economy of any country. micro, small and medium Enterprises (MSME) play an important role in economic development in both developing countries and developed countries. MSME sector have a very important role to play in increasing employment opportunities and increasing income in developing countries. Improvement in quality and upgradation of technology are two important parameters which have been discovered in the present days are necessary for this paper focusing on the impact of technology and ICT on the MSME sector in India. The paper throws light upon various technology upgration schemes specially made for the MSME sector. It also attempts to address the bottlenecks of small and medium enterprises and technology. The researcher attempts to analyze the contribution of technology to increase production in the MSME sector. This paper is based on the basis of a comprehensive review of the literature on the impact of technology on the MSME sector. The review tries to find out whether technology has had a positive or negative impact on the MSME sector but is still not being fully utilized in building the MSME sector.