Sectoral Dynamics of Small-Scale Industries in Mizoram: A Comprehensive Analysis of Growth Rates and Policy Implication

Small-scale industries (SSIs), key components of India's MSME sector, are private enterprises with low investments in machinery and rapid market adaptability. MSMEs contribute 35.4% of the manufacturing output, 48.58% of exports, and 31.1% of the GDP, comprising 7.47 crore enterprises and employing 32.82 crore people, driving employment and regional development. This study examines SSIs in Mizoram within the Industrial Policy (1989) and New Industrial Policy (2000), which emphasized sustainable industrialization, local materials, incentives, and joint ventures. Using trend analysis of 2011–12 to 2020–21 data on SSI registrations, employment, and investments, the study finds that the industry's share in Mizoram's gross state domestic value added (GSVA) increased from 20.5% (2011–12) to 32.7% (2023–24), driven by electricity, construction, and small enterprises. SSI registrations fluctuated (140 in 2011–12; peak 371 in 2017–18; 170 in 2020–21), while employment increased from 6,876 to 8,943. Investment showed volatility (Rs. 600.59 lakh in 2011–12; peaks of Rs. 4,416.73 lakh in 2013–14 and Rs. 5,289 lakh in 2018–19; Rs. 897 lakh in 2020–21). Sectorally, hosiery/garments surged (159 units in 2014–15), wood production dominated (110 in 2019–20), and food production reached 48 units (2018–19), with growth rates showing instability and rebounds in 2020–21. Mizoram's SSIs show employment resilience amid volatility, suggesting growth depends on improved finance, incentives, infrastructure, skills, and market linkage.