Navigating the Waters of “The Engine of Development”- Small Medium Enterprises (SME‟s) in India

Abstract

SMEs are considered to be the spine of the Indian economic structure which has on a continuous basis proved to be the bulwark of the country‟s economy, providing it the resilience to ward of economic shocks and the sustaining capacity in many financial adversities and calamities. These have relentlessly contributed to the overall growth of national GDP and also has generated employment to millions and export to the worldwide economy. While, SMEs are the engines of development in the current scenario, their growth is hindered by factors like low capital basis, availability of low-cost credit, poor technology, lack of quality and sufficiency in material and human resources, infrastructural constraints, lack of market awareness, globalization of trade, increasing competition and timely restructuring when stressed. The motive of this research paper is to analyze and understand the impediments in the growth of SMEs in the Indian context and to suggest solutions to overcome them. The paper also seeks to explore the impact of the growth of these SMEs at a global juncture.