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This is well known fact that not only large scale industries but also Micro, Small Medium Enterprises plays important role in the development of economy of the any country. In India MSME have been accepted as the engine of economic development for promoting equitable development. MSMEs represent over 90 percent of total enterprises in most of the economics and are credited with generating the highest rate of employment development and account for a major share of industrial production and exports. MSMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural and backward areas, thereby reducing regional imbalances, assuring more equitable distribution of national income and wealth. MSME are complementary to large industries as ancillary units and this sector contributes enormously to the socio economic development of the country. This paper closely analysis the development and development of MSME in India and performance of MSME in India.Demonetization is a radical in this regard the present study is one of ant work to study the impact of demonetization in India with primary data study.