East India MSMEs perform as well as pan-India peers

CRISIL has analysed the growth performance of 393 micro, small and medium enterprises (MSMEs) rated by it in eastern India, mainly West Bengal, Odisha, Jharkhand, and Bihar. The analysis reveals that the average sales of these MSMEs increased to Rs 1,491. 11 lakh in 2012-13 from Rs 1,007.59 lakh in 2010-11 (refers to financial year, April 1 to March 31). The compound annual growth rate (CAGR) of 21.65 per cent is on a par with the growth rate of 5,890 CRISIL-rated MSMEs across India, which in turn showed a CAGR of 22.02 per cent, with average sales growing to Rs 2,243.43 lakh in 2012-13 from Rs 1,506.83 lakh in 2010-11. The key growth drivers in east India are the fast-moving consumer goods (FMCG) and agro-processing sectors, which showed a growth rate of 27 per cent and 26 per cent respectively in the analysis period, outpacing the 22.02 per cent growth of MSMEs across India as well as the 21.65 per cent growth of their peers across various sectors in east India.

  The other main performers from east India include textiles (20 per cent), steel and electrical goods (15 per cent each), and engineering/capital goods (13 per cent). The availability of affordable credit and a pro-MSME government policy focused on this region remain critical for the area's MSMEs to maintain their growth momentum.

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 50,000 MSMEs in India. This fortnightly tracker presents to our readers insights on MSMEs, a key element of the Indian economy.