Growth And Elasticity Of Output Of MSME In India

Abstract This paper analyses the phenomenon of growth in India through the lens of employment elasticity. Investigative results are imitative for decompositions of both the level and change of combined employment elasticity in terms of sectoral elasticities, relative development and employment shares. Estimates of these decompositions are presented with employment and output data from related sources for both economies. In India, MSME sector was the key determinant of both the level and change of aggregate elasticity. In India, service is the most important determinant of the level, but manufacturing remains an important driver of changes in aggregate employment elasticity. The core objective of the present paper remains to analyse the growth and elasticity output relationship in this sector, so the study contains the productivity analysis of the MSME sector in India. This will unleash the role of the various inputs and output in production here. Extended Cobb Douglas Production Function has been utilised on the secondary, cross section data of MSMEs of India. Different variables like employment, Number of working enterprises, input, output and capital are selected to analyze their effects of MSMEs.