Factors of Export Promotion of MSME in India with Special Reference to Raw Material Availability

Abstract

With around 30 per cent contribution towards GDP and 40 per cent export of the country, the growth of the micro, small and medium enterprise (MSME) sector is an important driver of the Indian economy. This article seeks to identify the factors for export promotion from both the macro and micro point of view. Thus the study is to consider the factors of MSME sector as a whole with special reference to availability of raw materials. The linear regression model with the ordinary least square method has been applied after examining autocorrelation and multicollinearity in the data series. It has been concluded that foreign exchange rate, fixed investment and financial support from the government affect export performances of MSME. With the growth analysis and determination of Levene’s Test for Equality of Variances among coconut and coir production and the amount of export, it is observed that the poor growth in availability of raw material may have affected the export performances adversely.