India has registered itself as the fastest growing economy of the world which is a story of the current financial year. We cannot ignore the role of SME and MSME behind the economic and social development. Let us have a brief picture of the actual fact.
Collective manufactured output – 45%
Collective employment – 6 crore people
As of now, the numbers of micro, small, and medium enterprises are 26 million in total. It is collectively contributing slightly more than 7% of India’s GDP which is at a growing rate.
Business loans for manufacturing sector
Micro enterprises are provided with the loans up to Rs.25 Lakh while the amount is above Rs.25 Lakh & up to Rs.5 Crore in case of small enterprises. However, the medium enterprises in India are provided with business loans above Rs.5 Crore to Rs.10 Crore loans.
Business loans for service sector
When it comes to the small enterprises, the range starts with Rs.10 Lakh and ends at Rs.2 Crore. An amount up to 10 lakh is offered as micro business loans to the micro enterprises in India, while the amount is highest in case medium enterprises. The medium enterprises are blessed with the loans above Rs.2 Crore which end at Rs. 5 Crore at the higher position.
Why India needs to encourage its SME sector?
We need to encourage and grow the SME sector for many reasons. Small and medium-sized enterprises have registered more than 8000 products that are demanded in India as well as in international market. Considered as the backbone of our economy, this sector is instrumental in contributing 40% of India’s exports which is definitely a big milestone.
One of the finest things we are supposed to do is to inspire the foreign investors for which our government is putting its cent percent. Obviously, the Government of India has taken different measures to boost up the sector, but is it enough to be an economic superpower? No, it is not! The private sector has to come up with low-interest business loans for initiating the future of aspiring people. As of now, MSME is contributing 8% to national GDP, but the percentage has to enhance enough. Backed and initiated by the government sector, Indian SMEs have been engaged in posting their growth stories in recent years, but the speed will grow when the private sector will contribute its portion. No matter it is the government sector or the private, the potential of Indian youths has to be untapped very soon; because it will push the subcontinent to be an economic superpower.