Small and Medium Enterprises (SMEs) are the backbone of Indian manufacturing. While there is a lot of focus on the corporate sector, it is revealing to note that the 42.5 Million SMEs in India, accounting for 95% of the industrial output of India, contribute as much as 45% to manufacturing output, and 6% to the Indian GDP. One of the biggest employers in the country, more than 106 Million people work in SMEs.
Growth of SMEs has been stifled over the last four years and most of them are plagued by a lack of streamlined processes and systems, thus limiting their potential for growth. That is the reason we witness very few of the SMEs emerging as major organizations in the corporate sector. Not only has emerging technology served as a detriment for SMEs as they have not been able to readily adopt it, introduction of GST and other new regulatory frameworks has also caught them off guard.
