Growing SMEs in India

The United States of America has shown great interest in encouraging small and medium businesses across India. During his visit on India’s 64^th Republic Day, Barack Obama, the US President, announced OPIC’s support for the growth of SME’s in India. OPIC or, Overseas Private Investment Corporation is the United States’ government's development finance institution.

OPIC will be issuing loans over USD 1 billion in underserved rural and urban markets. The U.S. Trade and Development Agency has also set a target to leverage around USD 2 billion and invest it for renewable energy in India. OPIC is known to work for the development of varied sections across the globe. It boosts revenues, provides employment and offers many growth opportunities through its activities. Its initiative in India will earn around USD 4 billion. Besides, it will also give rise to many jobs in the two countries.

Contribution of SMEs

SMEs in India have a great share in the national economy. 40% of India’s workforce is engaged in the 48 million SMEs across the country. SMEs generate 45% of the industrial output and manufacture over 8000 high quality products. In international trade, 42% export is courtesy the SMEs. They also work to increase the employability. 42 million people are employed by the SMEs. Besides, they also generate 1 million jobs every year.

SMEcorner

SMEs have a wide market that is open for expansion and development. The diverse sectors present for the SMEs are manufacturing, food processing, agriculture, textiles, engineering, pharmaceuticals and retail. Technological advancement is greatly needed in this sector. The use of the internet can benefit the SMEs in a big way.

SMEcorner uses the online world to foster the growth of SMEs in India. It has a strong network with banks and NBFCs (Non-Banking Financial Companies) and assists SMEs to get easy access to loans through an online platform. Being first of its kind, this web portal encourages transparency and minimizes the risks for the SMEs.

What makes SMEcorner.com a reliable source is the expertise of its  founder and CEO, Samir Bhatia. He is a qualified Chartered Accountant and has great experience in working with leading banking companies of India. With 28 years spent in this industry, he has a great relationship with senior professionals and thus helps the SMEs in an efficient way.

SMEs Hold a Key Position in the Advancement of India's Economy

The SME sector in India is growing at an exceptional rate and has the potential to be one of the key drivers of the Indian economy. The sector is expected to outgrow as the largest employment generator in the country. It represents the true entrepreneurial spirit in the Indian business market.

Contribution of SMEs in Nation’s Economy

Small and Medium Enterprises play a vital role in the growth of Indian economy. They make up for about 45% of the industrial output, 40% of exports, and create one million jobs every year. SMEs also produce over 8000 quality products for the Indian and overseas markets. Therefore, SMEs are open to bigger challenges and better opportunities for expansion and variegation across different sectors.

The Indian economy has been witnessing a rapid growth. It is making remarkable progress in different sectors including industries like Engineering, Manufacturing, Textile, Food Processing, Pharmaceuticals, Retail, IT, and Agro sectors. SMEs are making the most of the increasing opportunities to give a boost to their business activities in these core sectors.

Potential for Growth

The SME sector is also the future of entrepreneurship development amongst the youth in India. It helps create ample job opportunities for the growing population. The Small and Medium Enterprises sector is emerging emerge as a critical tool for exploiting the demographic dividend present in this country. Owing to its underlying characteristics and strengths, the SME sector is also set to play an important role in the further growth of Indian economy.

In order to progress further, SMEs intend to go head-to-head with larger firms as far as technology is concerned. Some of the SMEs lack on the technology front in comparison to larger competitors, while other SMEs find it difficult to calculate how technology can create benefits for their firm. Even despite all these difficulties, even the smallest of companies are hopeful that they will be able to handle technology and realize its importance in profit earnings.

Central Government intends to nurture Small and Medium Enterprises to make the ‘Make in India’ a successful programmme. The government has the right intention, the right drive and the right vision to carry forward this cause. However, this transition will take some more time to reach fruition, the impact of which would be visible by 2016. Along with government initiatives, and funding by local and foreign investors, online financing platforms can further give a boost to SMEs. Free online financing platforms like SMEcorner.com are designed to make borrowing hassle-free for SMEs. Samir Bhatia, Founder and CEO, SMEcorner.com intends to assist SME companies by providing them with an easy capital raising platform that further boosts the chances of their growth and expansion.