Assessing Challenges and Policy Interventions for MSMEs in Industrial Estates: Insights from Assam, India

Abstract

This study examines the operational challenges faced by Micro, Small, and Medium Enterprises (MSMEs) within Assam's primary industrial estates, specifically Kamrup Rural and Kamrup Metro districts, regions with Assam's highest MSME density and strategic significance under India’s Act East Policy. As Guwahati serves as a gateway to Southeast Asia, the resilience of MSMEs in these districts is crucial to regional economic integration. Using Garrett’s Ranking Technique, the study identifies and ranks critical issues in finance, marketing, raw materials, labour, technical management, and power, while a one-way ANOVA assesses variations across business types: sole proprietorships, partnerships, and private limited companies. The findings reveal pervasive challenges across these categories, with significant strain from high financial costs, raw material scarcity, and inconsistent power supply, alongside gaps in labour and waste management. Policy recommendations highlight the need for adaptive financial assistance, improved industrial infrastructure, and targeted skill development to strengthen MSMEs' contributions to Assam’s industrial landscape. This research offers valuable insights into creating a supportive environment for MSMEs, underscoring the broader implications for economic growth in Northeast India. The study’s relevance lies in its potential to inform policy and foster sustainable growth pathways for MSMEs in line with the Act East Policy.