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.
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