International Journal For Multidisciplinary Research

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Call for Paper Volume 8, Issue 4 (July-August 2026) Submit your research before last 3 days of August to publish your research paper in the issue of July-August.

Regional Dynamics of Employment Generation in India’s MSME Sector: A Post-2020 Growth Analysis

Author(s) Dr. S. Munusamy
Country India
Abstract Micro, Small and Medium Enterprises (MSMEs) play a pivotal role in India's economic development by promoting industrialization, entrepreneurship, and employment generation across diverse regions. The present study examines the region-wise employment generated by MSMEs in India during the period from 2020–21 to 2025–26. The study aims to evaluate the quantitative contribution of MSMEs to national employment, analyse regional growth trends, and identify shifts in employment concentration across different geographical regions. The research is based entirely on secondary data collected from the Ministry of MSME through the Udyam Assist Portal. Percentage analysis and trend analysis have been employed to examine variations in employment across six geographical regions, namely Northern, Southern, Eastern, Western, North Eastern, and Central India.
The findings reveal that total declared MSME employment increased remarkably from 27.32 million in 2020–21 to 82.63 million in 2024–25, demonstrating the sector's substantial contribution to employment generation. The Southern Region consistently emerged as the largest employment provider, while the Eastern and North Eastern regions recorded the fastest growth in employment share, indicating increasing regional diversification of MSME activities. In contrast, the Western Region experienced a gradual decline in its relative employment share despite maintaining high absolute employment levels. State-level analysis further highlights the dominant contribution of Uttar Pradesh, Tamil Nadu, Karnataka, Maharashtra, West Bengal, Assam, and Madhya Pradesh within their respective regions. The statistical evidence supports both research hypotheses, confirming that MSMEs significantly contribute to employment generation and that the expansion of MSMEs has a positive influence on job creation across India.
The study concludes that MSMEs remain one of the strongest drivers of inclusive economic growth and regional development. It recommends strengthening infrastructure, improving access to institutional finance, promoting digitalization, enhancing skill development, and implementing region-specific policy interventions to reduce geographical disparities in employment and ensure balanced industrial development throughout the country.
Keywords Micro, Small and Medium Enterprises (MSMEs), Employment Generation, Regional Employment, Udyam Assist Portal, Regional Development, Job Creation, India.
Field Sociology > Economics
Published In Volume 8, Issue 4, July-August 2026
Published On 2026-07-26

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