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Msmb growth

Micro, small and medium businesses are the backbone of any economy that desires growth. The same holds answer to Indias growth and equity strategy. Indias large industries have become more technology oriented and capital intensive, requiring fewer workers, SMEs hold the key to cure unemployment and aid the National Income .The share of SMEs in the nations GDP has grown by 5.8% in 2003-04 to 8.7% in 2008-09 and has been growing at a higher rate than the industrial sector in general. The sector has utilized its potential not only in expanding Metros and rapidly growing cities but by tapping opportunities possessed by Rural India. In recent times, the shift of businesses to rural origins has contributed to many success stories, thus leading by example. The key to the success of this sector in India even in times of distress can be crowned to the massive existing and potential domestic demand of the country. Not only this-the risk taking capabilities of MSMBs have helped them to exploit opportunities that the larger industries were reluctant to cater to. However, there still exist barriers to growth-Capital inadequacy, lack of technology, skilled labor and infrastructure have prohibited the sector to take over a larger share of GDP. Despite some relief from SEZs, pending bills in the parliament, never ending scams have created a negative sentiment in the market. Banks are reluctant to offer loans to MSMBs despite their performance. Technological boom is yet to impact the working class and machineries that the sector commonly employs. Economists like P. Chidambaram have kept on emphasizing the importance of the sector in tackling the economic upsets the country is facing. Not only this, banks like SIDBI are coming forward to cultivate a more friendly capital environment for the sector to flourish. Taking you through with the current equation of MSMBs and their role in Indias current affairs whilst covering topics like

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