Micro, Small and Medium Enterprises (MSMEs) play an important role in the economic development of any developing country due to their innate capability of transforming novel ideas into innovations and thus building profitable enterprises. Globalisation has necessitated smaller firms to target on Sustainable Oriented Innovation (SOI) practices, as an essential parameter for achieving competitive advantage. However, transforming MSMEs towards the incorporation of SOI practices is not an easy task for a developing country like India. For this, MSMEs will have to focus on significant innovation factors that would help them sustain global competition. This paper highlights essential Critical Factors (CFs) to implement SOI practices in MSMEs of the Delhi NCR region of India catering to sector which manufactures products. A novel multi-criteria decision-making technique called an Analytical Hierarchy Process (AHP) is employed in identifying the vital CFs amongst these. The AHP evaluation results’ robustness is checked by performing a sensitivity analysis. Research results indicate that ‘Top management support’; ‘Government initiatives’ and ‘Financial resources’ are the most important factors contributing significantly in implementing SOI practices. This research is useful for developing recommendation for companies, academic experts, and Governmental professionals. The authors believe that research outcomes would be helping India in contributing for the sustainable development of MSMEs.