Linking Growth of MSME's to Employment: An Empirical Study of Assam

The manifest capability of MSMEs across the globe as an enabler of economic growth at various levels cannot be misconstrued. They are often regarded as one of the determinants of the growth of Indian economy. The defining role of MSMEs in terms of spurring job creation, boosting exports, fostering entrepreneurship and innovation, guaranteeing uniform distribution of national income and wealth, and ultimately nation's economic growth and economic independence has projected it as a high potential area of research. In reference to Assam, there exist around 45509 MSME units which account for 2.69 lakh employment till the end of 2016-17. Keeping this into consideration, the current paper attempts to comprehend how the growth of MSMEs contributes to GDP and employment generation in India, thereby providing the much required push to the country's economic growth. Additionally, the paper also focuses on linkage between the growth of MSMEs in Assam and employment generation in the state. The results of the findings indicate a positive and significant relationship between the two variables in Assam. The current study finds implications in the sense that it has the potential to achieve full employment and thereby creating greater earning opportunities for the nation in general and state in particular.