22 August 2017

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Economy Watch: India Strides Strong on the Economic Turf

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From the Editor's Desk

A strong economy and self reliance are what all nations, trans globe, strive to achieve. Any country, whose economy is vibrant, will automatically be vested with so much of privileges and decisive powers especially when it comes to global trade and commerce. Here comes the importance of Micro Small and Medium Enterprises (MSMEs) that contribute significantly to leverage the economic growth of any country.

Micro Small and Medium Enterprises (MSMEs) have key role in the economic growth of nations due to their enormous potential in wealth and employment generation. In developing countries, MSMEs are major source of revenue, and breeding ground for entrepreneurs.  The same is applicable in the Indian context too.  Entrepreneurial activity is abuzz in MSME segment due to its low investment curve. Statistical reports show that as of July 2006, SMEs account for 65 percent of the total labour force in 135 countries in the Asia Pacific region.

Coming to the Indian scenario, an MSME is defined in terms of the limit of investment being made to start a venture and this limit is currently upto 10 million for a small enterprise and 100 million for a medium enterprise. The MSME sector is the second largest manpower employer in India after agriculture. The SME segment has grown considerably over the years and the overall Indian SME market is estimated to be around $5 Billion. All these are encouraging facts for those who want to try their hands in the entrepreneurial drive.

According to Press Information Bureau, India’s total foreign direct investment (FDI) inflows (equity inflows + reinvested earnings and other capital) during the financial year 2009-10 was to the tune of US $ 34,167 million. Top sectors attracted FDI inflows are: services, computer software & hardware, housing & real estate, power, automobile, chemicals etc. This will in turn result in more employment generation in these segments. The presence of global players in the Indian market can indirectly create entrepreneurial opportunities to scores of desi players too.

Government of India has been rendering yeomen service and sincere efforts to provide an extra fillip to the growth curve of Indian MSME sector. Government’s initiatives to come up with more Special Economic Zones (SEZs) in various parts of the country, to instil confidence among the investors are highly recommendable.

According to the reports published in economic think tank, Centre for Monitoring Indian Economy (CMIE), the industrial production in India is all set to grow by a whopping 9.2 percent in 2010-2011. It also states that the industry is believed  to continue on its high growth trajectory in 2010-11, backed by a healthy rise in the consumption and the investment demand.

Besides another major leg up for the MSEs is the ever increasing competition among the major technology providers which constitute mainly global IT and ITES players, to provide cost effective and competitive technologies and solutions tailored around to suit the various business requirements of MSMEs.

All these are pointers to booming entrepreneurial trend that India will witness in the coming years.  Since India is fast becoming one of the most preferred destinations for investment opportunities, we have enough reasons to believe that the overall business scenario in India is going to be poised. This should be a feel good factor for all business fraternity in India.

Last Updated ( Sunday, 27 February 2011 21:56 )  

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