Gujarat clocks whopping 193 percent growth in MSMEs pushing it up to second slot.

The state’s share of MSMEs in the country goes up to 16% with over 3.62 lakh entrepreneurs in 2013-14. Tamil Nadu however continues to top the list with 32% share according to a recently published study by apex industry body ASSOCHAM.

In terms of simple growth, the MSME entrepreneur memorandums received by Gujarat had grown by 193% from about 20,000 in 2009-10 to over 58,600 in 2013-14, high lighted the study. During the same time, the number of entrepreneur memorandums received by states across India grew from 2.1 lakh in 200910 to 3.6 lakh in 2013-14, a growth of about 71%.

The study said Uttar Pradesh (12.5%), Karnataka (7.2%) and Maharashtra (5.5%) were among the top five states in terms of state-wise distribution of entrepreneur memorandums (part-II) filed by the MSME sector in India.

In terms of simple growth, the MSME entrepreneur memorandums received by Gujarat had grown by 193% from about 20,000 in 2009-10 to over 58,600 in 2013-14, high lighted the study. During the same time, the number of entrepreneur memorandums received by states across India grew from 2.1 lakh in 200910 to 3.6 lakh in 2013-14, a growth of about 71%.

However, memorandums filed by entrepreneurs in the MSME sector in the state grew at a compounded annual growth rate (CAGR) of about 31% during the 5-year period as against the national CAGR of about 14%.

“A large proportion of MSMEs are unregistered, with many of them established in the informal or unorganized sector, which keeps commercial banks away from lending to them,” said D S Rawat, National Secretary General of ASSOCHAM.

The economic slowdown over the last few years, however, has hurt micro, small and medium enterprises (MSMEs) in Gujarat more deeply than is evident on the surface. RBI data cited in last session of Parliament by minister of state for MSMEs, Giriraj Singh, has revealed that despite things looking up last year, Gujarat has 49, 382 sick MSMEs – making it the state with the second-highest number of sick MSMEs in the country .

Only Uttar Pradesh, which has 84,063 such units, has more sick MSMEs than Gujarat.

Out of 3.64 crore MSMEs in the country, 5.37 lakh units are sick, and 9.19% of sick MSMEs in the country are in Gujarat.

Source: The Times of India