The growth of enterprises contributes to the economic output as well as to the growth of the SEM sector.
Speaking at the Opening Session of the Global SME Business Summit, organised by CII, Arvind Panagariya, Vice Chairman, NITI Aayog, said that enterprises with less than 20 employees contribute 73% of employment generation in the manufacturing sector.
Anup K Pujari, Secretary, Ministry of MSME, announced that Indian MSMEs are increasingly becoming more vibrant, which has resulted in their increasing share to the country’s GDP, employment and productivity. He said that the Government is constantly working towards further enhancing the capabilities of the Indian SME sector. He added that the true victory of policy makers in the SME space will be to see these enterprises’ transition from small to large enterprises. The Ministry of MSME is prepared to work towards this goal with support from various stakeholders.
Partricia Hewitt, Chair, UK India Business Council emphasised on the need to strengthen partnerships and enhance trade relations between the two countries. She added that it is imperative for SMEs in both country to work closely together so they can grow together. She also confirmed that UK is working with the Indian Government and some State Governments to dismantle regulations. Many UK-based firms have invested in India, many with 100% FDI, and contributed to the ‘Make in India’ campaign initiated by Narendra Modi, she added.
The power of internet is also rendering its magic in the arena of business development, said Rajan Anandan, Vice-President and Managing Director, Google India. India has been ranked as the second largest country for technology start-ups which by 2020 will be pegged at the count of 10,000. It has been seen that the impact of internet on business growth and profitability is profound. It has been found that Enterprises who have braced internet for business development are able generate a particular targeted revenue 50% faster and also have up to 49% greater net income than those who are not tapping into the clout of internet.
As the largest employment generators after agriculture, Indian MSMEs account for around 38% of the overall GDP, 46% of exports and provide employment opportunities for around 120 million people, mostly concentrated in rural areas. As such, they not only boost the economic performance of India but also promote social inclusiveness by contributing to rural industrialization. With the theme ‘Make in India through Global SME Partnerships’, CII organized the 12th Global SME Business Summit 2015 today in partnership with the Ministry of MSME.