East has a lot of catching up to do| CRISIL Study

Credit rating agency CRISIL, which has analysed the performance of about 830 micro, small, and medium enterprises (MSMEs) from the eastern region of the country,  found that they lagged behind other regions in growth. The companies were rated on the basis of their 2013-14 (April 1-March 31) financials

The study covered MSMEs from the states of Odisha, Bihar, Chhattisgarh, West Bengal and Jharkhand, and revealed that their average annual turnover grew to Rs 11.93 crore in 2013-14 from Rs 9.17 crore in 2011-12, at a compound annual growth rate (CAGR) of 14 per cent.

This is lower than the CAGR of 8,400 CRISIL-rated MSMEs from across the country over this period, which was 16 per cent.

In the eastern region growth in agro-processing, dairy products, chemicals, pharmaceuticals and steel is offset by lower performance in the engineering/capital goods, electrical equipment and textile sectors.

Considering that the region is rich in natural resources, government initiatives to support infrastructure will help boost the region’s economy. CRISIL believes that in addition to the above, easy access to credit will also be critical for maintaining growth in the region.