Over the last few years, several nations across the world have understood the importance of the small and medium industries in boosting the economy of the country. SMEs have gained great attention recently and the several surveys conducted, indicate that SMEs have the potential to make the economy grow and keep it balanced. The biggest advantage of SMEs in a country like India is generating employment and boosting the nation’s GDP.
There are over 50 million SMEs in India both registered and unregistered which is 95 % of the industrial units in India as a whole. This accounts for 38% GDP. SMEs are responsible for 106 million employments i.e. 40 % of India’s total workforce and produce around 6000 products.
In developing economies like India, strengthening SMEs ensures that the purchasing power of the poor and middle-class section of the society experiences a great uplifting and also that the tremendous difference between the middle class and upper-class section of the society is reduced. SMEs play an important role in the development of the economies across the urban as well as the rural sections of the country. Small and medium scale enterprises have been creating a surge in employment in various sectors as well.
What limits the growth and development of SMEs in India?
The growth and the need to develop SMEs are very crucial for the economy for various reasons. But often these businesses are not able to sustain or grow due to financial limitations at various stages. In India, … Read More