Issues in SME Development in India (original) (raw)

This paper discusses the characteristics, contributions of SMEs to economic development, and the constraints to SME development in developing countries with particular reference to India. SMEs sector is a only solution to the problems of poverty, insecurity, unemployment, over population in the modern world. The contribution of SMEs has been remarkable in the industrial and economic development of the country. It has contributed a share of 40% in the industrial production and 35% of the total manufactured exports of the country. This sector is second in the rank of employment generation next to the agriculture. This sector employing approximately 14 million people. Overall this sector has contributed a lot to the economic development of the country. This paper provides some relevant recommendations to policy makers, development agencies, entrepreneurs, and SME managers to ascertain the appropriate strategy to improve the SME sector in the developing countries like India.