PROBLEMS, OPPORTUNITIES AND PROSPECTS FOR SME SECTOR IN INDIA

Presented By: SAHIL CHAWLA ASHISH KUMAR SHARMA SWAPNIL. V. BHONGADE

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INTRODUCTION

One of the major planks of India's economic development strategy. India accorded high priority to small and medium enterprises (SMEs) from the very beginning. These have become major contributors to the GDP. In the last two decades, the economic environment has changed in favor of SMEs. So, it is important to re-look into the basic issues of SMEs past problems, present opportunities and future prospects, especially in the policy framework.
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CLASSIFICATION
MANUFACTURING SERVICES

MICRO

<RS 25 LAKH

<RS 10 LAKH

SMALL

25 LAKH TO 5 CRORE

10 LAKH TO 2 CRORE

MEDIUM

5 CRORE TO 10 CRORE

2 CRORE TO 5 CRORE

MARKETING MANAGEMENT 6 Collated by Ramesh Adavi

Problems

SME
Opportunities

Future Prospectus

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EMPLOYMENT TRENDS

* Projected data for the year 2007-08 and 2008-09. ** Data for 2004-05 and 2005-06 pertain to small scale industries only.
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EXPORT TRENDS

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SMEs IN NUMBERS

* Projected data for the year 2007-08 and 2008-09. ** Data for 2004-05 and 2005-06 pertain to small scale industries only.
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SME SNAPSHOT
Indian SME Sector No. of units: 285.16 lakhs (2008-09) Employment generated: 659.3 lakhs (2008-09) Percentage share in GDP: 17% (2009-10) Production by registered & unregistered units: Rs 880805 crore (2007-08) Exports: Rs 202017 crore (2007-08)

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PROBLEMS IN SMEs

Poor awareness about IPR Lack of proper market information Research & Development Less innovative action in SME's Inadequate training Unskilled management Lack in awareness of global trade laws

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SIGNIFICANCE OF SMEs

Provides low cost employment Assists in regional and local development Provide rural people an opportunity for income generation. Attracts direct foreign investment since multinationals It also generates cheaper goods and services to the general population
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SECTORWISE OPPURTUNITIES

Engineering Goods 33.9% CAGR IT & ITeS-BPO 28.3% CAGR Textiles 10% CAGR Gems & Jewellery 5.2% CAGR Chem & Petrochem 13.2% share in exports Food & Agro Products - 10% share in exports Leather & L. Products Pharmaceuticals Plastic & P. Processing
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FUTURE PROSPECTS

It has been suggested, that these small and micro units establish their own power plants to solve the power issues. Technology mission, which will help develop dissemination of technology. It has been targeted to raise the production of SME units to 13, 98,803 cores for the year 2011-12. Employment has been planned to be increased from 282.57 to 659.35 lakhs.

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ELECTRICITY

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TECHNOLOGY

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PRODUCTION

7,00,000 crore (2007-08)

13,98,803 cores (2011-12)

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EMPLOYMENT

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CONCLUSION

There is an unprecedented importance of Small and medium Enterprises in the country. The role of government for promoting the SMEs needs to be pro active. Govt. should address the needs of the sector and provide financial as well as infrastructure support where the SMEs can grow. The need of imparting vocational training and skill development centers has to be addressed. SMEs are the growth engine of the economy and help sustain other sectors such as services.
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REFERENCES

http://dcmsme.gov.in http://cc.iift.ac.in

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QUESTIONS ?

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THANK YOU !

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