North Indian states lead the way in MSME growth

 

CRISIL has analysed the growth performance of 3,850 micro, small, and medium enterprises (MSMEs) rated by it across India from 2010-11 to 2012-13 (refers to the financial year April 1 to March 31). The analysis reveals that the average sales per enterprise of these CRISIL-rated MSMEs grew from Rs 1,668.80 lakh in 2010-11 to Rs 2,505.30 lakh in 2012-13, at a compound annual growth rate (CAGR) of 22.53 per cent.

The top 10 states, where enterprises registered the highest growth, are Delhi, Punjab, Rajasthan, Haryana, Gujarat, Andhra Pradesh, West Bengal, Maharashtra, Uttar Pradesh, and Tamil Nadu, in descending order. Enterprises in these states grew at a higher CAGR of more than 15 per cent. It is interesting to note that the top three states are from northern India. MSMEs in these states enjoy the benefits of being close to a large market and the fast-growing urban centre of Delhi NCR. They also benefit from a strong agricultural base and a growing population across northern India, which is fuelling demand for various products and services.
Note: The analysis is based on the latest audited financial statements of CRISIL-rated MSMEs. Most enterprises finalise their audited financials by the end of the second quarter, after the closure of the financial year. CRISIL rates over 45,000 MSMEs in India. This fortnightly tracker presents to our readers insights on MSMEs, a key element of the Indian economy.