Growth, Employment and Output Generation in MSME in India: An Analysis

The paper have attempted to understand the dynamics of MSMEs –that is to say,how much the number of units is increasing and how much is the contribution of MSME’s in the economy? We have also explored the elasticity of employment with respect to output. We are basically trying to analyse the growth, employment and output pattern of the MSMEs in India. It emerges from the analysis that the growth rate had been quite high for the period 2001-02 to 2011-2012. Similarly, employment generation has been higher. The Output also has been showing an upward trend. The two-way analysis in the changes of attributes is attempted in the paper, viz.(i) Absolute changes in the figures of different attributing factors, and (ii) Relative changes in the figures of these attributes. Employment generation as well as fixed investment levels (valued at current prices) was found to be going up during 2001-02 to 2011-12.