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Madras Management Association

SMEs & THEIR ECONOMIC RELEVANCE:


OVERALL POLICY AND FRAMEWORK
By
Dr. J.S. Juneja
Chairman
à         
Î ÎÎ  Ansal Chamber ± II Bhikaji Cama Place New Delhi 
el : ++9  2Î  2Î Fax : ++9  2Î2 Î
Email: gpsjsj@del.vsnl.net.in & gpsjsj@bol.net.in

Y
April 2 Î
'he entrepreneur always searches for change responds
to it and exploits it as an opportunity.´

By
Peter F. Drucker

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Study by AIMA - SMALL SCALE INDUSTRY IN INDIA ±
ASSESSMENT OF GROWTH AFTER LIBERALISATION
Results Revealed
Cumulative growth rate in various regions of India
between 1998-2003
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$ While the cumulative growth rate over the five - year period (base: 1997-98) is negative,
there is a turn-around during the last two years.
$ Overall negative growth rate is primarily on account of Northern and Eastern regions. The
companies in the South have recorded a growth rate of 25% in their turnover in the last
five years.
$ The apparent wide disparity in the growth pattern of the SSIs between the Southern region
and the rest of India points to the fact that SSIs in South had exploited the market
opportunities better than others.
$ However for 1999-2003 while overall growth rate is 8.48%, in case of companies in the
North, East and West, the Southern region has reported a 24% growth.
$ Sector wise, the manufacturing sector has recorded a negative growth of -8.14% in the
last five years while in the services sector there is a growth of 16.34%.

AIMA ±Impact Assessment
IMPEDIMENTS TO GROWTH

Problems Faced by SSIs as Barriers to Growth

Market Related 70%

Finance Related 25%

Government Policy Related 12.78%

Power Related/Infrastructure 14.0%

Technology 14.60%

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