Analysis of comparative study on sick enterprises and bank credit in India
The research paper an attempt has been made to explore the quantum of sickness MSMEs and bank credit in India. For this purpose secondary source of data collected from Reserve Bank of India during the period from 2001 to 2017. The Micro, Small and Medium Enterprises in India has been increased extremely fast in recent year. The Sick MSMEs has been growing continuously due to lack of managerial skills, competition and lack of credit availability. The result of the study show that the number of sick units in MSMEs sector has increased from 3,04,235 units in 2001-2002 to 4,80,280 lakh in 2016-17and outstanding bank credit increased from 46.08 billion to 326.74 billion respectively. It is clear that lack of demand for the product and shortage of working capital are the main reasons for MSMES sickness in India. MSMEs sickness affect significant towards production and employment opportunity as well as economic development in India.