Growth and performance of organised and unorganised micro and small manufacturing enterprises in Punjab a case study of Ludhiana

Abstract

The MSME sector is a thriving and dynamic sector in Indian Economy. It has consistently increased in terms of units, the variety of items produced, and the creation of jobs. The sector contributes significantly to the national GDP, industrial production, export revenues, regional growth, and social welfare, all of which play a significant role in the economy. The present study analysed the growth trend of MSMEs in India, Punjab and Ludhiana during 1995-96 to 2020-21 with the help of secondary data. The secondary data is analysed with the help of Log-lin model. Further, factors affecting the performance of selected manufacturing MSEs in organised and unorganised sectors of Ludhiana, Punjab are analysed. A total number of 400 sample units were selected on the basis of stratified random sampling. At the first stage, the annual reports of District Industries Centre, Ludhiana were used to select two industries (at 2 digit level) on the basis of their contribution to total micro and small manufacturing production in Ludhiana as per National Industrial Classification (NIC) 2004. The selected industries include manufacturing of other transport equipment and textile industry. At the second stage, sub-classes at 5 digit level have been selected to represent each selected industry of 2-digit level on the basis of their maximum production i.e. manufacturing of parts and accessories for bicycles, cycle-rickshaws from the major challenges faced by the micro and small manufacturing enterprises in Ludhiana. The primary data has been analysed by applying appropriate statistical tools in order to make it simple and easy to understand. The results have been interpreted by using the statistical tools such as Factor Analysis, t-test analysis, Garrett s ranking analysis. The study recommends policy inputs which will be relevant for enhancing the growth and performance of MSEs in the organised and unorganised sector. newline