Recent downward trend in contribution of Indian MSMEs (Micro, small and medium enterprises) in total Indian exports has raised an alarm in head of policymakers. The share in 2009-10 was 46.20% in total exports which has dipped to 43.00% in 2012-13. The major causes inadequate market developments, limited R&D and innovation and physical infrastructure. In India only 0.5 % of MSMEs export while in developed economies like Europe 25% of exports comes from MSMEs. Its obvious that the policies and support from government in these countries are much better than India.
Indian MSMEs need much of support to improve their standards and qualities to improve their market share. The need for innovation in MSMEs is very urgent. In a developing country like India developed MSMEs will provide a better support to common people and will improve the chances of employment too. In order to improve the condition of Indian MSMEs skill developments programs by government will be very efficient. In order to improve exports, (EDC) Export development companies can also play a vital role. Hence there is an immense need for the development of these two things in order to develop Indian MSMEs.
Indian markets are highly price sensitive hence these markets don’t have much expectation from Indian markets. With the increase in export from Indian MSMEs the chances of development of these enterprises are much high on the other hand there will a huge employment opportunities as well.
Although cabinet has approved a fund of Rs. 100 crore for the development of MSMEs but the way in which it will be utilized will impact on the growth of these MSMEs. The need for development of these small enterprises is very important as most of the Indian families are dependent on small and medium enterprises, the development of these MSMEs will not only help in the growth of these industries but will also impact on the living standards of the peoples employed in it.
PGDM II Sem.