The SME Industry will continue to remain an integral part of Indian economic development strategy for 2016. The government's focus on the manufacturing sector, which is considered as the core industry sector for job creation, has set the ball rolling in the right direction. There has been a growing recognition of both the criticality and possibility of enhancing SME competitiveness through reducing the cost of production, improving product/service quality and targeting niche markets.
Some of the major policies and technologies which will influence the year 2016 are as follows:
Goods and Services Tax (GST)
The good and service tax bill or GST officially known as ‘The Constitution Bill, 2014’, which is proposed as a national value added tax, is to be implemented from April 2016. It is a comprehensive indirect tax on the manufacturing, sales and consumption of goods and services throughout India, and it will replace taxes levied by the Central and State governments. This will help the Indian economy as BSE SME Head Ajay Kumar Thakur says: “GST implementation will increase Government tax revenue with an increase in GDP of the country”.
Kalraj Mishra, Union MSME Minister, said: "the GST Bill will clear all the tax obstacles for ease of doing business as GST will change the complete tax system in India”. Therefore, GST will play a very influential role in Indian SME industry in 2016.
Made in India
Made in India applies to any product that is fully manufactured in India. It applies to products of domestic or foreign-based corporations as long as the product was made wholly in India. It is an initiative by the Government through the FDI Scheme “Make in India”. Since, in the recent report, it is found that India ranks first in FDI leaving behind US and China, therefore, it is expected that Indian economy will transform from Make in India project to Made in India in 2016. And through SME listing as said by BSE SME Head Ajay Thakur: "Prime Minister's vision of Made in India through Make in India will soon be successful".
The emergence of Cloud Computing has notably made an evolution in the IT industry by putting forward ‘everything as a service’. Cloud Computing is of growing interest to companies throughout the world including Indian SMEs. Cloud Computing provides a compelling value proposition for organizations to outsource their Information and Communications Technology (ICT) infrastructure. As Paul Marriott, Senior Vice-President, Platform Solutions, SAP Asia Pacific Japan, in recent conversation said: “ Businesses will be extremely connected on real-time through SAP HANA Cloud in next 1-5 years. It will remove all the complexity of the traditional database system”. He further added that “the SME would be attracted to HANA Cloud platform which is a boon for the entrepreneur to start with because it is a free cloud platform for all entrepreneurs.”
Social Media, Mobility, Analytics, and cloud are beginning to play a significant role in defining the way an enterprise engages not only with their customers but employees as well. Tata Teleservices President Prateek Pashine said: "The increase in internet penetration and usage coupled with seamless web access via mobile and increasing availability of affordable smart devices(tablets and mobile phones) has led to a number of business owners turn to mobile applications and social media for running their businesses and creating customized services for their customers”.