ROLE OF SME’S IN ECONOMIC GROWTH

OF INDIA
 INTRODUCTION……..
 SMEs sector has emerged as a dynamic and vibrant sector of the
economy. The Indian economy is expected to grow by over 8 per
cent per annum until 2020 and can become the second largest in
the world, ahead of the United States, by 2050, and the third
largest after China and the United States by 2032.
 DEFINITION OF MSME

• According to new THE MICRO, SMALL AND



MEDIUM ENTERPRISES DEVELOPMENT ACT,

2006 the MSME
• Definitions are as follows: In the case of
the enterprises engaged in the
manufacture or production of goods
pertaining to any industry specified in the
first schedule to the Industries (
DEFINITION OF MSME FOR SERVICE SECTOR

Service Sector

Enterprises Investment in plant & machinery

Micro Enterprises Does not exceed ten lakh rupees:
Small Enterprises More than ten lakh rupees but
does not exceed two crore rupees
Medium Enterprises More than two crore rupees but does
not exceed five core rupees
SUPPORTING AGENCIES OF SMES
 Some of the important organizations that are associated with SMEs
in India are: Small Industries Development Organization (SIDO),
National Small Industries Corporation Ltd. (NSIC), Small Industries
Development Bank of India (SIDBI), Confederation of Indian
Industry (CII), Laghu Udyog Bharti (LUB), Federation of Indian
Chamber of Commerce and Industry (FICCI), Associated Chamber
of Commerce and Industry of India (ASSOCHAM), National Institute
of Small- Industry Extension Training (NISIET), World Association
for Small and Medium Enterprises (WASME), Small Scale
Industries Board (SSIB), PHD Chamber of Commerce and Industry
(PHDCCI), Federation of Indian Exporters Organization (FIEO),
Federation of Associations of Small Industries of India (FASII)
MSMES SHARE BY SECTOR
GROWTH PERFORMANCE OF SMES OR MSMES
IN INDIA
EMPLOYMENT IN MSME SECTOR
SECTOR WISE MSME
ACTIVITY WISE MSME
 THE OPPORTUNITIES OF GROWTH

IN THE SMES SECTOR
1. Less Capital Intensive
 2. Extensive Promotion & Support by Government
 3. Reservation for Exclusive Manufacture by small scale
sector
 4. Project Profiles
 5. Funding - Finance & Subsidies
 6. Machinery Procurement
 7. Raw Material Procurement
 8. Manpower Training
 9. Technical & Managerial skills
 10. Tooling & Testing support
 11. Reservation for Exclusive Purchase by Government
 12. Export Promotion
 13. Growth in demand in the domestic market size due to
overall economic growth
 14. Increasing Export Potential for Indian products
 FACTORS AFFECTING SMES

 MSMEs in India face several problems such as-

1. lack of availability of adequate and timely credit
2. High cost of credit
3. inadequate infrastructure facilities like power, water and
roads, and lack of access to modern technology.
4. limited access to equity capital
5. problems in supply to government departments and
agencies
6. procurement of raw materials at a competitive price
7. Issues of storage
8. Designing, packaging and product display
CONCLUSION
 In India SMEs has achieved steady growth over
the last couple of years. The role of SMEs in the
industrial sector is growing rapidly and they have
become a thrust area for future growth. The Indian
market is growing and the Indian industry is making
rapid progress in various Industries like manufacturing,
food processing, textile and garments, retail, precision
engineering, information technology, pharmaceuticals,
agro and service sectors.
Under the changing economic scenario the SMEs have
both the opportunities and challenges before them.