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Insurance for Msme Development in Indian Context
Ashim Kumar Das1, Abhijit Chakraborty2

1Abhijit Chakraborty, Department of Management Studies, National Institute of Technology, Silchar (Assam), India.

2Ashim Kr. Das, Department of Management Studies, National Institute of Technology, Silchar (Assam), India.

Manuscript received on 10 October 2019 | Revised Manuscript received on 24 October 2019 | Manuscript Published on 26 December 2019 | PP: 819-823 | Volume-8 Issue-12S October 2019 | Retrieval Number: L118610812S19/2019©BEIESP | DOI: 10.35940/ijitee.L1186.10812S19

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© The Authors. Blue Eyes Intelligence Engineering and Sciences Publication (BEIESP). This is an open-access article under the CC-BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/)

Abstract: MSME development is a much required function for the development of an economy. Insurance is very old business cum service that supports the commercial activities by owning the risk associated in exchange for premium. The objective of this paper is to find out whether any relationship exists between the insurance and development of MSMEs in Indian context. The study uses Ordinary Least Square method to draw the regression equation and Granger Causality test to check for causality between Non-life Insurance sector development and development of MSME. It was found that non-life insurance and MSME are highly positively correlated. Though there is no causal relationship between these two variables but insurance has a positively significant influence on the development of MSME. The finding of this study indicates the requirement of favorable policies to develop the Insurance market in order to promote MSME leading to economic growth.

Keywords: India, MSME Development, Non-Life Insurance.
Scope of the Article: Context Awareness and Personalization