Table of Contents
Abstract………………………………………………...…………………………….3
1: Introduction……………………………………………………………………….4-7
2: Definitions ………………………………………………………………………...7-8
3: Economic Significance……………………………………………………………9-17
         a)
Contribution to GDP…………………………………………..…………..9-11
         b) Employment
Scenario…………………………………………………….11-12
         c)
Exports……………………………………………………………………..12-14
         d)
Production…...…………………………………………………………….14-16
         e)
Opportunities................................................................................................16-17
4: Importance and Benefits of SMEs.........................................................................18
5: Economic Structure in India..................................................................................19-21
5: Small Industries and Globalisation........................................................................21
6: Obstacles and
Solutions...........................................................................................22-24
Conclusion.....................................................................................................................25
References......................................................................................................................26
ABSTRACT
Indian economy too over the decades has undergone several
structural transformations both in the main sectoral
components as well as in the intersectoral
transformation. What is more noticeable and significant is not the change from
small scale to medium scale and to large scale production sector but a broad
based change within the composition of products, production techniques and the
resultant technical efficiency. The importance of small and medium scale
enterprises in the process of economic development of the Indian economy
becomes more significant when we examine its contribution to Gross Domestic
Product, Employment generation capacities as well as promotion of exports.
Nonetheless, since globalization of the Indian Economy a move towards
liberalized economic policy, the small and medium sector has not reflected any
positive co-relations between opening up and attainment of greater growth
targets. This paper aims to examine the reasons for this gap and suggest
measures to policy planners which can be implemented not by India.
An industrial structure constitutes many
large industries and many small industries, and due to technological
breakthroughs they can help in the production of high value-added goods and
services. Small and Medium Enterprises (SMEs) hold a
greater scope of employment potential, hence, there is a greater need to
promote and strengthen them. What is the way to sustain the contributions of SMEs and to have optimum utilization of scarce financial
and physical capital resources?
