CRISIL has analysed the performance of 2,185 micro, small and medium enterprises (MSMEs) in the manufacturing sector, which were rated on the basis of their financials in 2013-14 (financial year April 1 to March 31).
The study revealed that MSMEs in the engineering sector - i.e., auto ancillary and components, capital goods, machinery and machine tools, electrical and electronics components and equipment - registered lower growth as compared to other segments.
MSMEs in the engineering-based segment, manufacturing electrical and electronics components and equipment, grew at a CAGR of 9.18 per cent, followed by those manufacturing capital goods and machinery at 8.77 per cent, and those in auto ancillary and components at 7.64 per cent.
A slowdown of investment in infrastructure projects and capacity expansion in the manufacturing sector and a decline in automobile demand has impacted growth. For 2015-16, the Economic Survey expects a GDP growth of 8-8.15 per cent in 2015-16 and CRISIL expects improvement in prospects for MSMEs in this sector.