In July 1991 India has taken a series of measures to structure the economy. New economy brings many changes in many areas. Silent features are liberalisation, privatisation and globalisation that are called LPG. Reasons for implementing LPG are like excess of consumption over revenue resulting high Government borrowing &losses to public sectors enterprises, low foreign exchange reserves etc. Liberalisation means free economy from government control. It was started at the time of Mr P. V. Narasimha Rao's government when Dr. Man Mohan Singh was finance minister and Mr. Chidambaram was commerce minister. Indian MSME sector plays a pivotal role in growth of industrial economy. It is estimated that sector account for 45% contribution in gross manufacturing output and about 40% in export. In recent year MSME sector has consistently registered a higher growth rate than overall industrial sector.