Published Online:January 2026
Product Name:The IUP Journal of Applied Economics
Product Type:Article
Product Code:IJAE020126
DOI:10.71329/IUPJAE/2026.25.1.22-43
Author Name:Sania Sami and Soma Roychowdhury
Availability:YES
Subject/Domain:Economics
Download Format:PDF
Pages:22-43
In the evolving entrepreneurial landscape, the integration of sustainable and innovative practices is crucial for fostering comprehensive economic development. However, India’s persistent regional disparities and sluggish gross domestic product (GDP) convergence pose significant obstacles to economic prosperity and sustainable growth. This study evaluates the entrepreneurial performance of Indian states and union territories (UTs) through a comprehensive assessment of micro, small and medium enterprises (MSMEs), ranking them based on key indicators such as economic performance, innovation, sustainability, and human development. By identifying top, medium, and low-performing states/UTs, clustering them accordingly, and employing visual representations, the study provides a nuanced understanding of regional entrepreneurial dynamics. Additionally, it highlights the role of entrepreneurship in driving economic expansion, enhancing innovation capabilities, fostering sustainability, and advancing human development. The development of the normalized entrepreneurial performance index (NEPI) offers a strategic tool for policymakers, enabling state governments to diagnose strengths and weaknesses within their entrepreneurial ecosystems
Entrepreneurship is a fundamental driver of economic development, and India is no exception. It plays a transformative role in shaping workforce distribution across economic sectors, particularly in a country where structural shifts in employment remain a critical concern.