Empowering MSMEs with News & Insights

India all set to become the largest SME nation globally

Updated: Mar 20, 2013 02:33:14pm
image
New Delhi, Mar 20 (KNN) India which has a total base of about 4.88 crore small and medium business (SMB) units is all set to become the largest SME nation globally.

Micro scale businesses are contributing 95 per cent of Small and Medium Businesses (SMB) landscape, followed by small scale businesses contributing 4.8 per cent, rest 0.2 per cent by medium scale, said a report from Zinnov, an advisory firm.

Out of the 4.88 crore SMBs around 55 per cent are located in urban areas while the rest 45 per cent constitutes to the rural regions. The report also highlighted that around 82 per cent of all SMBs are situated in 10 states in India. These 10 states, also account for two-third of the mobile and internet subscribers in the country.

Over the last few years SMBs in India have gained strategic importance from corporations and government. The recently announced Union Budget also provides tax incentive for growing SMBs.

The SMB sector in India is growing at an exceptional rate and has the potential to be one of the primary drivers of the Indian economy. Today 1.5 million SMBs export their products or services outside India which is a sign of the sector’s rapid evolution,” Praveen Bhadada, Director, Market Expansion, Zinnov said.

As per the report, the Indian SMB sector gives employment to around 8.11 crore people in India which has increased at a CAGR (compound annual growth rate) of 5.29 per cent.

“The sector is growing to be the largest employment generator in the country and today represents the true entrepreneurial spirit on the Indian business community,” Bhadada added.

Apart from generating employment in India, SMB has also contributed enormously to the country’s export.

"The SMB sector in India is growing at an exceptional rate and has the potential to be one of the primary drivers of the Indian economy. Today 1.5 million SMBs export their products or services outside India which is a sign of the sector’s rapid evolution”, added the Director. (KNN)





COMMENTS

    Be first to give your comments.

LEAVE A REPLY

Required fields are marked *