Growth Dynamics of MSMEs in Punjab with Special Reference to Ludhiana District

Abstract

The study examines the growth trend in the MSMEs in Punjab, with a specific focus on the Ludhiana district. The secondary data were analysed using mean and measures of dispersion i.e. standard deviation and Coefficient of Variation. The Log-linear model is used to examine the compound annual growth rate in the number of units, employment, fixed investment and production of MSMEs. The growth in the stated variables remained highly significant over a period of 1995–96 to 2020–21 in the Ludhiana district. On the other hand, there was insignificant growth in the number of units of MSMEs units in Punjab during 1995–96 to 2020–21. The study found that micro enterprises are relatively more active in Udyam Registrations as compared to small-scale and medium enterprises in Punjab and Ludhiana district. The study examines the problems faced by MSMEs in Punjab. The study suggested that the state needs to fully utilise its potential for growth in the industrial sector through the development of MSME sector especially in agro-based and other key industries. The state should invest in infrastructure, technological upgradation, and research and developmental activities.

Keywords: MSMEs, Punjab, Ludhiana, Growth

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