ENGINES FOR INDIA’S GROWTH
Recognizing the potential of the SME sector, the central government has announced a series of policy initiatives and schemes that were aimed to boost the start-ups and MSME sector
The demonetisation move by the government was well-planned to root out black money from the economy. However, what everyone seems to have forgotten is the second motive of demonetisation, which was to foster a cashless and digitally driven economy. The increasing number of digital transactions has been a vital factor in the thriving of e-commerce sector in recent years. According to a survey conducted by the government, the sector has registered a growth of 19.1 per cent over the years 2016-17.
The Small and Medium-sized enterprises (SME) play a central role for driving India’s economic growth and development at the regional, national and global platforms. The MSE sector in India has demonstrated remarkable resilience in the last few years to sustain an annual growth rate of over 10 percent even in the face of the global and domestic economic slowdown.
Recognizing the potential of the SME sector, the union government had initiated a series of policy initiatives and took into consideration various measures for improving the ease of doing business. Other measures introduced by the government included simplifying of the tax structure, conducive policy regime for industrial parks, power and land availability, infrastructure development, labour laws reforms, good governance and focusing on massive skill development programs like Skill India Mission.
There are over 60 million SMEs in India, generating a collective 100 million employment opportunities, contributing 12 per cent of the GDP. Be it for mobiles, consumer goods, chemicals, construction, plastics, wood-works or textiles, 45 per cent of India’s total manufacturing output is provided by SMEs alone…… Read the full feature
Article excerpt reproduced as published in Economic Times dated 7th June 2018, Page No. 8