Micro, small, and medium-sized enterprises (MSMEs) play a critical role in fostering economic development, job creation, poverty reduction, and promoting equality across economies worldwide. This sector serves as a catalyst for equitable distribution and inclusive growth, driving economic progress. MSMEs exhibit the highest employment growth rates, positively impacting export capabilities and industrial advancement. This article aims to assess the performance of MSMEs and their contribution to inclusive prosperity in India. While the Indian economy has shown significant growth over the past two decades, the benefits of this expansion have not been uniformly distributed. The article examines how MSMEs influence various socio-economic groups and the involvement of women in India, using metrics such as employment generation, regional industrial distribution, and entrepreneurship. Secondary sources such as Annual MSME Reports and the Handbook of Indian Economy Statistics provide the foundation for this analysis. The findings highlight that the MSME sector significantly contributes to inclusive growth in India by creating substantial job opportunities, promoting balanced regional industrial development, and fostering entrepreneurship among women from marginalized backgrounds. Initiatives like ‘Make in India’ and ‘Digital India’ are expected to further enhance growth prospects for MSMEs in the next decade, opening new avenues for their expansion and contribution to the nation's economic fabric.