SME’s have been the neglected arm of the Indian economy, an economy obsessed with the industrial giants tends to overlook the contributing aspects of the SME’s. When it comes to the Indian context, SMEs generate more than 55% of industrial value added year on year and 90% of total establishments of India, but we never see this sector in any of the glitzy magazines or the financial sections of any of the newspapers.
SME the growth engine
Large companies tend to outsource their requirements to SMEs as it is cheaper, efficient and quick. Most SMEs are specialized for some goods or services that the large companies are looking for. Growth of large industries depends on how SMEs do successfully in the trade and business.
SMEs & Make in India vision
The Make in India vision serves for the challenges faced by the Indian economy. In this scenario, SME’s play a pivotal role. They have been recognized as an important strategic sector for generating economic growth and an innovative mechanism leading to reduce the unemployment, inequality and poverty. With the rapid migration happening of people moving from country side to metro cities SMEs are the major employment generating tool having prime potential to absorb new workforce.
Thus, for the Make In India vision to reach the destination of accomplishment, we cannot afford to ignore the potential of SME’s with their evident productive contributions. Government needs to wake up to this reality and facilitate creation of even policy and business environment for SMEs.