An Empirical Assessment of Growth and Performance of MSMEs in India with Special Reference to Odisha

Abstract: Micro, Small and Medium Enterprises (MSMEs) are regarded as the primary engine as well as the back bone for economic growth and development of a developing country like India. The importance of MSMEs is attributable to their high employment potentialities, the requirement of low capital and technology, use of traditional or inherited skills, use of local resources, promotion of entrepreneurial skills, mobilization of resources, and exportability of products. MSMEs play a crucial role by providing economic justice through equitable distribution of income and wealth in a region and in turn reduce regional disparity in the country in general and in state in particular. MSMEs occupy a very important position in the Indian economy due to their major contribution in terms of output, exports, and employment which helps to solve a number of macroeconomic problems in the state of Odisha as well as in India. This paper examines and compares the growth and performance of MSMEs throughout the length and breadth of the state Odisha and India. This study also focuses on the sector-wise composition of MSMEs in the state of Odisha and also analyses the extent of bank credit flow to these sectors. Statistical devices like average annual growth rate (AAGR), arithmetic mean (AM), coefficient of variation (CV) and coefficient of correlation are used to analyse the secondary data collected from various authenticable sources as per the requirement of objectives of the study.

Keywords: MSMEs, Growth, Performance and Credit flow