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Growth and Structure of Micro, Small, and Medium Enterprises (MSMEs) in Kerala

Journal of Rural and Industrial Development

Volume 6 Issue 1

Published: 2018
Author(s) Name: Ibrahim P.A. | Author(s) Affiliation: Research Scholar, Department of Commerce, Aligarh Muslim University, Aligarh, Uttar Pradesh, India.
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This paper aims to draw a complete picture of Micro, Small, and Medium Enterprises’ (MSMEs) structure and growth in Kerala by analysis all India censuses of MSMEs starting from 1973. The MSME sector in Kerala has been neglected in the past due to political, economic, and social reasons. This paper emphasizes the stature of the small business in the state by comparing principal characteristics of the sector with neighbouring states and all India averages. There is a tremendous growth opportunity for IT and tourism along with traditional industries like handicrafts, handloom, Khadi, food-processing industries, garment making, and textile industries in the state. Promotion of the sector would stimulate industrialization, solve the problem of slow growth, unemployment among educated youth, and the issues arising from the unprecedented return of migrates. This paper also analyzes the catalytic role of MSMEs in industrialization of rural and backward areas; targeting youth and socially disadvantaged group such as SCs, STs, and women. Most of the literature is focused on issues and credit crunch of the sector by oversimplifying the key role of MSMEs on state’s development. The important finding of the study is: Kerala is far below in terms of area, population, and infrastructure facilities among Indian states, but in turn MSMEs’ performance is the state stands among the top contributing state of the country.

Keywords: All India Census of MSMEs, Employment, Industrialization, Investment, MSMEs, Production

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