Small and Medium Enterprises (MSMEs) are the backbone of emerging and developed economies. Small and Medium Enterprises (MSMEs) contribute significantly to the gross domestic product, employment, and innovation in the Indian economy. However, despite their importance, Indian MSMEs face several challenges, including limited access to capital, outdated technology, poor infrastructure, and weak market competitiveness. This research paper examines how policy reforms, digital transformation, financial inclusion, skill development, and international partnerships can enhance MSME opportunities in domestic and international markets. This analysis is based on a review of recent initiatives under the Make in India campaign and statistical data. It proposes a multi-dimensional strategy to empower MSMEs as engines of inclusive and sustainable development. This study identifies the key factors that enhance MSME competitiveness. It also addresses regulatory barriers, infrastructure deficits, and limited market access as major challenges.