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A cursory review of MSMEs in the Northeastern States

ASSAM: MSMEs is one of the vibrant sectors in Assam leading with more than 60 percent shares compared to other states while rest of the states together comes around 40 percent. More than 50 per cent of fixed investment, 65 per cent of output and 55 per cent of employment of entire Northeastern region is shared by Assam.


On the basis of the projected figure by the Ministry of MSMEs Government of India, number of MSMEs units in Assam are more than 2,40,000  having investment of Rs. 1500 crore with turnover production around 7000 crore and employing over 6 lacs.


ARUNACHAL PRADESH: Arunachal Pradesh being is one of the most backward district as far as MSMEs is concern. There are around 1700 MSMEs units having approximate investment of  Rs. 50 crore and turn over production is around 100 crores and generating employment of only around 5000.


MANIPUR : Manipur too has witnessed a very low growth of MSMEs, as there are around 60,000 manufacturing units having investment around  500 crores and turn over production around  Rs. 900 crores generating employment around 1,75,000 workforce.


MEGHALAYA: In Meghalaya, there are over 1,500 MSMEs with an investment of around Rs. 200 crores having turn over production of Rs. 700 crores, employing 90,000 persons. This state is also having very low growth of MSMEs.


MIZORAM: Mizoram is one of the most backward in respect of MSMEs. Here in this state, there are 30,000 manufacturing units having investment of around Rs. 175 crore with turnover production of around Rs. 300 crores and employing  over 35,000 workforce.


NAGALAND: Nagaland is also lagging behind in MSMEs as in the state, there are 20,000 manufacturing units with capital and fixed investment of around Rs. 600 crores, having annual turnover production of approximately Rs. 700 crores and employing around 80,000 workforce.


SIKKIM: Sikkim is the most backward state compared to all other states in terms of MSMEs units, which was lately included and added as one of the states in North East Region.


Here in the state, there are only around 500 manufacturing units having very poor capital fixed investment of around Rs.15 crores with annual production of around Rs. 55 crores and employing barely 2000 skilled and non-skilled workers.


TRIPURA: Tripura also accounts poor as far as MSMEs is concern. Here in this state, there are little over 30,000 MSMEs units having fixed capital investment of around Rs. 40 crores and annual turnover of around Rs. 600 crores, and employing roughly 70,000 skilled and unskilled workers in the entire units.


In short, it is assumed that a dismal picture that prevails across the Northeastern state except Assam, where  MSME sector is now a fastest and thriving sector in Assam in terms of production, investment, numbers of units and employment generation.

Under the backdrop of this dismal scenario of MSMEs, it necessitated PHD Chamber of Commerce, the seminar was organized on the theme “Development of North East Region—Role of MSMEs “to intervene with the stakeholders and various agencies engaged in promoting it and interacting with them to know the grey areas and ways out to bring changes”.

Principal Director, PHD Chamber of Commerce for North Eastern States, Dr. Ranjeet Mehta held the key of deliberation on MSMEs and made his agenda clear about what the role of MSMEs and what needs to be done to improve the scenario. He expressed deep concern for MSMEs and said that the development of this region is a top priority of Government of India, partially implementing the Act East policy for overall economical development by helping the MSMEs.

Bijoy Kumar Sharma

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