MSMEs and Economic Transformation: An Empirical Study of Income Growth in Bodoland Territorial Region, Assam

Abstract

This study investigates the transformative role of Micro, Small, and Medium Enterprises (MSMEs) in driving income generation within the Bodoland Territorial Region (BTR) of Assam, encompassing five districts: Udalguri, Baksa, Tamulpur, Chirang, and Kokrajhar. A survey of 370 registered MSMEs reveals a substantial upward shift in income levels over time. Initially, 67.29% of enterprises operated within low-income brackets (below Rs. 200,000), while currently, 69.45% fall within the mid-income ranges (Rs. 200,001 to Rs. 600,000), signaling strong economic progression. Statistical analyses—including Chi-square tests, paired t-tests, and correlation analysis (r = 0.785, p = 0.000)—confirm the significance of this income growth and underscore a robust positive trend across the sector. These findings suggest that MSMEs are evolving from subsistence operations to sustainable business models, playing a pivotal role in regional development. The study recommends targeted policy support, including enhanced credit access, regulatory simplification, digital infrastructure, and market integration, to sustain and accelerate this positive trajectory.