Performance Of Micro, Small And Medium Enterprises In Karnataka

Abstract

Karnataka is the second richest and largest state in south India and known for ideal place for industries. The major industries are food processing units, engineering units, readymade garments manufacturing units, foundry units, automobile units, chemical plants, handicrafts units, etc. In addition, Karnataka has lineage industries like handicrafts and small-scale industries such as handicrafts, khadi and rural industries. Bengaluru’s Peenya Industrial Area is one of the Asia’s largest industrial areas and is home to many MSMEs. Karnataka has been focusing on economic and industrial development with a progressive outlook for changing needs over the years. MSMEs play an important role in economic growth by fostering entrepreneurship and generating large employment opportunities. MSMEs provide support to large firms as suppliers of input goods and services, thereby contributing to industrial development. Many programs and policies, incentives and concessions have been in place for promoting MSMEs. Some industries in the state have suffered losses due to lockdown and stagnant exports caused by the outbreak of the infectious virus Covid-19, two years ago. Some industries have disappeared. In the meantime, the state and central governments have provided some assistance. However, these industries still need time to reach their former level. In these backdrop, this paper made an attempt identify the performance of MSMEs in Karnataka in terms of number of units registered, investment and employment generation. And also concentrated to know the industrial policy and its strategies. The data has been collected from various secondary sources such as concern annual reports, journals, various working papers, departmental study and review reports, and previous studies. The statistical tools like AGR, CAGR, percentages have been adapted for analyzing and interpreting the collected data.