Role of SMEs in India | SMEs in India
Role of SMEs in India
SMEs play a vital role in the growth
of an Indian economy due to their major contribution to the country’s
socio-economic development. It helps to generate many employment opportunities.
Plus, it also balances the development of the nation’s backward and rural areas
simultaneously.
The number of SMEs in India comes out
to be 42.50 million including both registered & unregistered ones. Around
95% of the industrial units in India employs about 40% of India's workforce.
The small and medium enterprises in
India have taken India to peak point by fulfilling the requirements of flexible
operations, low investment, and the capability to develop the right native
technology.
Ideal Features of SMEs
● Small Medium Enterprise
Examples show that they work for the welfare of both artisans and workers. The
small medium enterprises help them by offering new employment, and loans
opportunities.
● The small and medium
enterprises in India put a restriction in offering credit or funding support to
banks.
● Not only this, but they also
promote the entrepreneurship development and up-gradation of skills by
establishing specialized training centres.
● They also help in upgrading
the developmental technology, modernization of the sector and infrastructure
development as well.
● Small medium enterprise
examples are known to assist both domestic as well as export markets.
● These SMEs provide quality
certification services and modern testing facilities.
What is the role of SMEs in
the Indian Economy?
The day SMEs were formed, every SME
segment has proven to be the most effective and highly dynamic among the Indian
economy sectors. The small and medium enterprises in India manufacture several
products useful for both international and domestic markets.
It helps to increase the growth and
development of villages, khadi, and coir industries. They have formed a
partnership with the concerned ministries, stakeholders, and state governments,
towards the fostering of rural areas.
We must admit that SMEs play an
essential role in offering multiple employment opportunities for poor people in
rural areas. They have also helped in the industrialization of all areas having
a low capital cost other than the large industries.
The SME sector has widely contributed
to socio-economic development acting as a complementary unit to large sectors.
Also, these SMEs contribute to the country’s development in many areas
including flexibility in operations, the requirement of low investment,
mobility through the locations, low imports rate, and a major contribution to
domestic production.
They have more capability and
capacity to develop and handle appropriate local technology, compete in
domestic and international markets. They put a contribution towards
manufacturing defence materials and flourishing new entrepreneurs by excess
knowledge, training, and skills through specialized training hubs.
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