Industrial Dynamics and MSME Growth in Sonipat City: A Sectoral Analysis (2000–2020)

Abstract

The Micro, Small and Medium Enterprises (MSME) sector has emerged as a cornerstone of India’s economic development, contributing significantly to GDP, employment, exports and regional balance. This study explores the classification, role and spatial-temporal growth of MSMEs in Sonipat City, Haryana, from 2000 to 2020, alongside the evolution of large-scale industries. Following the revised 2020 MSME definitions under the Atmanirbhar Bharat Abhiyan, this research analyzes the industrial structure in Sonipat across three tiers—small, medium and large enterprises—by assessing investment, turnover, sectoral distribution and locational dynamics. The study highlights the growth of small-scale industries in areas such as Kundli, Rai and Murthal, their contribution to employment and their function as feeder units to larger industries. Medium-scale industries are examined for their integration into national supply chains, use of advanced technologies and export capacity, while large industries are assessed for their impact on infrastructure, innovation and regional industrial transformation. Through primary and secondary data, including government reports and geospatial mapping, this paper offers insights into the industrial trajectory of Sonipat and evaluates the challenges and government interventions that shape its industrial ecosystem. The findings underscore Sonipat’s emergence as a key industrial hub in Haryana, reinforcing the critical role of MSMEs in India’s industrial policy and economic decentralization.