SMEs to MNEs
Forging the Way Ahead
Saturday, 19 February, 2011 PHDCCI Chamber, New Delhi
In association with
Federation of Indian Export Organizations
National Entrepreneurship Network
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The SME sector, the backbone of the Indian economy, has witnessed rapid and unparalleled growth despite the recession which had hit the economy. In his address Dr K C Chakrabarty, Deputy Governor, RBI, said,’ In a nation's economy, it's the small and micro enterprises which play a vital role. For, they not only give employment to a large number of unskilled and semiskilled people but also support bigger industries by supplying raw material, basic goods, finished parts and components, etc. The critical role and place of the MSME sector in the Indian economy in employment generation, exports and economic empowerment of a vast section of the population is well known. There are about 2.6 crore enterprises in this sector. The sector accounts for 45 per cent of the manufactured output and 8 per cent of the Gross Domestic Product (GDP). MSMEs contributed close to 40 per cent of all exports from the country and employ nearly 6 crore people which is next only to the agricultural sector. MSME is the best vehicle for inclusive growth, to create local demand and consumption. MSMEs cater to niche markets. The MSMEs of yesterday are the large corporates of today and could be MNCs of tomorrow.’ If India has to have a growth rate of 8-10 percent for the next couple of decades, it needs a strong MSME sector, without which it cannot be achieved. There are approximately 3 crore MSMEs in the country. The SMEs have shown an average growth of 18 percent over the last five years. Around 98 percent of the production units are in the SME sector. These figures have been fueled by the burst of entrepreneurship across the country, spanning rural, semiurban and urban areas. This burst has to be nurtured nourished and...