India is a developing country which emphasis on the development of enterprises by which a wealth and sound economy can be established. It is termed as The ‘Engine of Growth’ for India. Micro scale, Small and Medium Enterprises is also contributed in the growth and development of Indian economy. MSME establish the foundation of an economy to generate the employment and enlarged the GDP. This sector has been viewed as motor of financial development and social advancement. Contribution of MSMEs in the Indian economy are increase standard of living, eradicate unemployment, encourage dispersal of industries, encourage balance of payment , promote mobilization of resources far as business age, containing provincial inconsistencies, encouraging fair monetary development and upgrading trade capability of the country has been very extraordinary. The Ministry of MSME start up different schemes aimed at financial assistance, technology assistance and up gradation, infrastructure development, skill development and training, enhancing competitiveness and market assistance of MSMEs. In spite of some infrastructural lacks, problem of raw material, problem of under utilization of capacity and difficulties, stream of institutional credit and deficient market linkages, this sector has registered remarkable accomplishment as to increment in number, quantum of speculation, size of generation and in general commitment to national GDP. The purpose of this study is to focus on the opportunities available in India for development of MSME sector, to identify important issues and challenges and offer suggestions to solve this problem.