Growth and Elasticity of Output of MSMEs in India
Abstract In the last few years, the phenomenon of a marked slowdown in the growth of employment has been noticed in many countries across the world including India. An important objective of development planning in India has been to provide for increasing employment opportunities not only to meet the backlog of the unemployed but also the new additions to the labour force. Micro, small and medium enterprises (MSMEs), including khadi and village industries generate the highest rates of employment growth and account for a significant share of industrial production and exports. The core objective of the present paper is to analyse the growth and elasticity output in the MSMEs sector. Extended Cobb Douglas Production Function has been utilized based on the secondary data. The study reveals that the output elasticity of employment during the study period is very low as compared to the output elasticity of export.