Micro, Small, and Medium Enterprises (MSMEs) form the backbone of the Indian economy, contributing significantly to GDP, exports, and employment. With over 63 million MSMEs operating across diverse sectors, they account for approximately 30% of India’s GDP and 45% of total exports. This paper explores the multifaceted contributions of MSMEs to the Indian economy, including their role in fostering entrepreneurship, driving rural development, and promoting inclusive growth. Additionally, it highlights the challenges faced by MSMEs and discusses policy measures to enhance their contribution. Through a detailed analysis of statistical data and case studies, this paper underscores the importance of MSMEs in achieving sustainable economic growth in India.