MSMEs in south India top growth figures

Remarkably, MSMEs in Andhra Pradesh and Tamil Nadu posted 21% and 18% growth respectively, being key contributors to the growth in this region

CRISIL has analysed the performance of about 8,400 micro, small, and medium enterprises (MSMEs), rated on the basis of their 2013-14 (April 1-March 31) financials. The study revealed that the average annual turnover of these MSMEs grew from Rs 15.18 crore in 2011-12 to Rs 18.14 crore in 2012-13 (a growth of 19 per cent) and to Rs 20.53 crore in 2013-14 (a growth of 13 per cent). It also showed that MSMEs in the southern states of India, namely, Tamil Nadu, Kerala, Karnataka, Andhra Pradesh and Telangana, have performed better than those in other regions - recording a growth in average annual turnover of 21 per cent in 2013-14, as against 13 per cent overall growth of MSMEs. Remarkably, MSMEs in Andhra Pradesh (AP) and Tamil Nadu (TN) posted 21 per cent and 18 per cent growth respectively, being key contributors to the growth in this region.

The key sectors contributing to the growth story in the south are pharma & healthcare (45 per cent growth in average annual turnover of MSMEs), metal (35 per cent), leather (32 per cent), agro-processing (21 per cent), textile (17 per cent) and IT (16 per cent).

MSMEs in South India (particularly AP and TN) are expected to surpass the other regions in terms of future growth with support from policies for industrial development, including the setting up of various industrial centres in less developed regions of southern TN, development of the Madurai-Tuticorin corridor in TN, a green energy corridor and infrastructure development of 31 cities in AP under the Atal Mission for Rejuvenation and Urban Transformation (AMRUT) scheme.

Note: CRISIL has rated over 75,000 MSMEs in India. This fortnightly tracker presents to our readers insights on MSMEs, a key element of the Indian economy.