MSME Sector in India: State-wise Disparity Analysis

Shubham Laha; Sebak Kumar Jana

doi:10.55524/ijirem.2026.13.1.10

Abstract

The Micro, Small and Medium Enterprises (MSME) sector is becoming an important engine of growth, employment generation and diversification of the industrial base in India. The paper sheds light on the state-wise and intra-state disparities in MSME distribution, which is evidence of non-uniform industrial growth across the country. Employing enterprise shares, rank analysis, as well as Gini and Theil inequality indices and coefficients of variation, the study shows that MSMEs are highly concentrated in a limited number of economically developed regions with strong industrial ecosystems, infrastructure and financial accessibility. The findings also show that inequality increases with enterprise size and that the medium enterprises are more regionally concentrated, while micro enterprises have relatively high dispersion. These findings point to the fact that, while the sector has overall expanded, MSME development in India is regionally skewed and reinforces differences in industrialisation and economic opportunities.

Keywords

MSME Sector, Regional Disparity, Industrial Development, Gini Coefficient, Coefficient of Variation, Enterprise Distribution, Inclusive Growth, India

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Cites this article as

S. Laha, S. K. Jana, "MSME Sector in India: State-wise Disparity Analysis", International Journal of Innovative Research in Engineering and Management (IJIREM), Vol-13, Issue-1, Page No-78-86, 2026. Available from: https://doi.org/10.55524/ijirem.2026.13.1.10