Regional Trends in Financing and Growth of Indian MSMEs
Ms. Smita Mohapatra*, Post Graduate in Commerce and MBA in Finance.
Manuscript received on October 29, 2020. | Revised Manuscript received on November 04, 2020. | Manuscript published on November 15, 2020. | PP: 10-12 | Volume-5 Issue-3, November 2020. | Retrieval Number: 100.1/ijmh.C1164115320 | DOI: 10.35940/ijmh.C1164.115320
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© The Authors. Published By: Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)
Abstract: The Indian MSME Sector is the major contributor to the national economy providing it resilience to ward off global economic stress and adversities. With around 60 million units of MSME across India, they promote entrepreneurship and boost employment on a large scale. But since Independence, the Small-Scale Industries didn’t get much attention by the Central Government or State Governments. It took almost five decades for the Govt. of India to realize the potential of MSMEs in economic development of the country. The MSMED Act was passed in Parliament in 2006 to enable vibrant growth of Indian MSMEs and separate Ministry of Micro, Small & Medium Enterprises was created. The Reserve Bank of India has acted swiftly to improve the flow of credit to the MSME sector. Banks and NBFCs have come together in a great way to boost formal credit to MSMEs with all such loans qualifying for Priority Sector Lending classification. But still the growth of the MSME sector has not been uniform across different regions of the country. In this paper, we will try to analyze the regional trends in the financing and growth of MSMEs in India. Secondary data available from various Govt. sources are utilized to draw some conclusions regarding the current growth trends of the MSME units. Chi-square tests and correlation analysis are used to quantify the performance parameters of MSMEs. The paper brings out the figures pertaining to growth of MSMEs across rural and urban India. It concludes by emphasizing the need for enhanced growth opportunities for the MSME sector in low-performance states.
Keywords: Growth, India, MSME, regional.