Growth and Performance of MSMEs in India

Abstract

Micro, Small and Medium enterprises (MSMEs) play a key role in the development of economies with their effective, efficient, flexible and pioneering entrepreneurial spirit. In terms of value, the sector accounts for about 45% of the manufacturing production and 40% of the total exports of India. This sector contributes 8 percent to GDP of India. This sector employs about 60 million persons in over 26 million units throughout the country. In this research study, an attempt is made to analyze the growth and performance of Micro, Small and Medium enterprises (MSMEs) in India during the study period of 2002-03 to 2011-12.The study adopts exploratory research design. The study uses secondary data which is collected from ministry of MSMEs, Journals, Books, reports of Governments, etc. The collected data is analyzed by mean and growth rates. The analysis reveals that the growth in total working enterprises, employment created, market value of fixed assets and gross output of MSMEs is significant . Therefore, it is concluded that increasing number of MSMEs  and their fixed assets will  enhance their gross output if the government provide support such as infrastructure, skill development, technology up gradation, supplying low cost of  capital and  marketing facility. Expanding MSMEs will enhance employment, exports and GDP of the Indian economy.