More than 50 million SMEs exist currently and over the last five decades, the SME sector has grown dynamically by contributing 40% of the country’s exports and creating millions of jobs annually. The SME sector has a lot of potential for growth in the coming years with respect to job creation, entrepreneurial spirit, and innovation.
Without any dispute, SMEs are one of the key drivers behind the Indian growth story. This sector, comprising of manufacturing, infrastructure, service industry, food processing, packaging, chemicals, and IT, has emerged as the most vibrant and dynamic engine of growth of Indian economy over the past few decades.
These self-funded proprietary firms, private co-operatives, private self-help groups, Khadi, and Village and Coir industries, not only provide huge employment opportunities but also ensure regional balance by taking industrialization to rural and backward areas.
With the Indian economy expected to touch $5 trillion by 2025, and with groundbreaking economic reforms kicking in, SMEs are expected and bound to play a much more important role. B2B e-commerce, food processing, pharma, and homeland security and defence are the areas to watch out for.