Abstract:
Posing as a dominant agrarian economy at the time of independence, India today looks brighter as one of the emerging economies of the world. During the British rule, the entrepreneurial spirit was subdued in India, witnessed GDP growth rate of 0.9% during the first half of the 20th century. It was only the Swadeshi Movement and boycott of foreign goods in the first quarter of the last century that took place to realize the place of entrepreneurs and small industry in the developing consciousness of modern and free India. Historical data on Small Scale Industries (SSI), now termed as Small Enterprises (SE) and made part of SME, reveals that SSIs in India constitutes 90 % of the units, 40% of the value addition and 80 % of employment of the total manufacturing sector. This vibrant segment of the Indian economy, has been contributing over 39% of the manufacturing sector out put, 33% of the national exports and providing employment to nearly 312 lakh people in both rural and urban areas across the country. Comparing the growth of Small & Medium Enterprises over a period of 10 years (1994-2003), some of the significant improvement areas. The number of SME units has risen by over 40%. The production increased from Rs.2,98,886 crores in 1994-95 to Rs.7,63,013 crores in 2002-03, an increase by over 150%. The employment generation has grown by over 40% Exports from SME have risen by nearly 3 times in 2003 compared to that in 1994. In the liberalized trade environment, the global village is the market for the SMEs. it is imminent for the SMEs to compete in the international market particularly in terms of quality, cost and promotion. SMEs are great opportunities for the Country to improve the GDP. The Government of India has identified SME sector as thrust area and given various policy guidelines for promoting SME sector in our Country. Availability of timely and adequate finance to SMEs being the critical factor, the Government has initiated significant policy changes to facilitate flow of credit to SME Sector leading to contribution of the economic development of the country.
