MSME Sector in Bangaru Telangana

Sixth Economic Census

Economic Census is a complete enumeration of all establishments/units located within the geographical boundaries of the State. All units engaged in production or distribution of goods and services other than those for own consumption were counted. As per the provisional results, there are 20.86 lakh establishments in the State, which are engaged in different economic activities other than crop production, plantation, public administration, defence and compulsory social security services. Out of which, 11.81 lakh establishments (56.62%) are in rural areas and 9.05 lakh establishments (43.38%) are in the urban areas. Growth in establishments is 77.82% in the State as against 41.73% all-India, while growth in employment in the State is 37.78% as against 34.35% of All India.

A total number of persons employed in all the establishments is about 56.12 lakh, of which, 23.50 lakh persons (41.87%) are employed in rural areas and 32.62 lakh persons (58.13%) are employed in the urban areas. There are about 0.46 lakh handicraft/ handloom establishments, accounting 2.21% of the total number of establishments and Warangal district (19.10%) stands first in terms of a number of handicraft/handloom establishments in the State.
The district-wise analysis reveals that the Hyderabad district stands first with 16.97% of total establishments, and Adilabad district with 5.29% has the lowest number of Establishments in the State.

MSME Sector in Telangana

The Micro, Small, and Medium Enterprises (MSME) is playing a key role in the economic and social development of the State and is providing direct employment opportunities to 64,604 people and with a vast network of around 5,787 units. Its contribution in terms of indirect employment, providing inputs/ raw material for other sectors and export earnings, is immense.

As per the Micro, Small and Medium Enterprises Development Act, 2006, manufacturing and service enterprises are categorized into Micro, small and medium enterprises based on investment criteria as shown in Table 4.7:

Table 4.7: Definition of MSME

Enterprises	Manufacturing Sector (investment in plant and machinery)	Services Sector (investment in equipment)
Micro	Less than Rs. 25 lakh	Less than Rs. 10 lakh rupees
Small	More than Rs. 25 lakh rupees but less than Rs. 5 crore	More than10 lakh rupees but less than Rs. 2 crore
Medium	More than 5 crore rupees but less than Rs. 10 crore	More than 2 crore rupees but less than Rs. 5 crore

Out of 5,787 MSME units in 2014-15, around 61 percent constitute micro enterprises, 39 percent small enterprises and mere 0.4 percent medium enterprises. However, it is noted that in terms of employment and investment, small enterprises occupies significant share in total MSME.

Figure 4.2: Share of Micro, Small, and Medium Enterprises in terms of units, investment and employment.

Note: Calculated from the data provided by the Commissioner of Industries, Government of Telangana.

The growth rates of MSME industry has seen high fluctuations in the recent times. It is observed that (see Figure 4.2) number of units, employment, investment in MSME sector has peaked during 2010-11 and declining with another peak in 2013-14. The absolute and relative share of the number of factories, investment, and employment of the micro industries has been declining during the period 2008-09 to 2014-15. However, the share of small and medium enterprises has seen an increasing trend though the absolute trend showed a decline.

G.Rajendera Kumar