Economics · Industrial Sector
State governments in India often prioritize Micro, Small, and Medium Enterprises (MSMEs) to promote regional economic growth primarily because of which characteristic of these enterprises?
- 1High reliance on foreign direct investment
- 2High employment generation potential with lower capital cost✓
- 3Exclusive focus on heavy infrastructure development
- 4Exemption from all forms of local and national taxation
Correct answer
High employment generation potential with lower capital cost
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