Pattern of Growth of Unorganized Food and Beverage Enterprises: An Analysis Across States of India

Abstract

Unorganized manufacturing enterprises form a pivotal component of India's socio-economic framework, with the food and beverages micro enterprises (MMEs) standing out within this sector. Utilizing secondary data from the National Sample Survey Organization (NSSO) and comparing survey rounds from 2010–2011 to 2015–2016, this study assesses the unorganized food and beverages MMEs' growth dynamics among 25 industries. It examines their status in terms of enterprise numbers, employment share, and Gross Value Added (GVA), alongside estimating the Annual Average Growth Rate (AAGR) across major Indian states based on these parameters. The findings reveal a trend of expansion exceeding stagnation or contraction in both enterprise numbers and per enterprise GVA during the periods studied. Additionally, labor productivity appears to positively correlate with enterprise growth, with establishments and urban-based enterprises showing a higher tendency toward expansion. This analysis demonstrates a significant growth trajectory in the unorganized micro food and beverages sector from 2010–2011 to 2015–2016, marked by increased enterprise numbers, employment generation, and output across major states. This chapterconcludes by underscoring the sector's vital contribution to employment and output generation, offering insights for policymakers and stakeholders focused on fostering this sector's development. This growth trend not only showcases the sector's resilience but also its potential as a driver of socio-economic progress during the observed periods.

Citation

Jana, D., Pal, M.K. and Dandapat, A. (2024), "Pattern of Growth of Unorganized Food and Beverage Enterprises: An Analysis Across States of India", Pal, M.K. and Das, P. (Ed.) Informal Manufacturing and Environmental Sustainability, Emerald Publishing Limited, Leeds, pp. 101-114. https://doi.org/10.1108/978-1-83549-998-620241008