Structural Disparities in MSMEs in Pre Bifurcated Andhra Pradesh – How to Fill the Lacuna?

Abstract

MSME sector has become the backbone of Indian economy by providing large employment with lower capital cost, reducing regional imbalances through rural and backward industrialization, assuring equal distribution of national income and wealth. In the changing global industrial climate, the Government of united Andhra Pradesh, in line with the Central Government Policy, has placed much emphasis for the growth of MSMEs and envisaged special incentives and concessions to this sector. In order to ensure the policy implementation of the Government, the APSFC has continued to enhance its funding to this sector. The present paper analyses the flow of credit in terms of sanctions and disbursements, assistance to MSMEs, the district-wise, region-wise distribution of lending towards MSMEs in terms of number of units, amount sanctioned and disbursed, trend analysis using regression model, ANOVA: Single Factor to highlight the difference between assistance given to MSMEs and others. Lastly, few suggestions were offered for strengthening the position of MSMEs in the newly formed Andhra Pradesh.