The small and medium enterprises can be termed as the backbone of the Indian economy. The SME sector in India today is growing at an exceptionally fast rate and so it is proving to be extremely beneficial for the Indian economy. The SME sector has a contribution of a good 40% annually to the Indian economy. There are more than 11 million SMEs that produce more than 8000 products. Out of all the industries and businesses in India, 90% are included in the SME sector. The various factors that have contributed to the growth of the SME sector in India are as follows:
After globalization and liberalization, these SME units are being funded by global fund providers along with local ones.The technological advancement also has helped the SME sector in India grow tremendously. There are a wide number of online directories that have all these businesses registered and help the buyers and sellers both to track their required businessmen and create contacts with them.Another added advantage is that to start these businesses, minimum investment is required.Private Banks and government banks, both are extremely supportive towards these small and medium enterprises.Individual incomes have increased and these sectors have provided job opportunities for a lot on rural Indians.The SME sector has shown remarkable progress even in the export trade of the nation.
These SMEs need to perform more research regarding technology advancement and use it to their benefit.
Also SMEs have to have a more professional attitude towards the foreign business they receive. There should be various training programs for the SMEs organized by the government for their betterment. The infrastructure has to be improved so that these small and medium enterprises can comfortably work from rural areas as well. The SME sector is strong and surviving because its base lies in traditional skills and knowledge. This time is considered best for investing in the small and medium enterprises sector because it is on the beginning stage and is predicted to have a bright future.
