MSME- India jumps 23 notches at rank 77 in ease of doing business

The MSME (Micro, Small and Medium Enterprises) sector is emerging as backbone of the Indian economy. Also known as the SMEs, this sector is growing at a rapid pace and has, in fact, emerged as one of the fastest growing in the past decade.

Small and Medium Enterprises (SMEs) play a vital role for the growth of Indian economy by contributing 45% of industrial output, 40% of exports, employing 60 million people, create 1.3 million jobs every year and produce more than 8000 quality products for the Indian and international markets. SME’s Contribution towards GDP in 2011 was 17% which is expected to increase to 22% by 2012. There are approximately 30 million MSME Units in India and 12 million persons are expected to join the workforce in the next 3 years.

In Ease of Doing Business India jumps 23 notches at rank 77. The government has set a target of achieving a rank of 90 in 2019 and to 30 by 2030. India is the only large country this year to have achieved such a significant shift & is continuing its steady shift towards global standards. On ground lot of things can be done to help small businesses achieve their full potential.

Despite of the importance of the MSMEs in Indian economic growth, the sector is facing challenges and does not get the required support from the concerned Government Departments, Banks, Financial Institutions and Corporates which is proving to be a hurdle in the growth path of the MSMEs. The list of the problems that are faced by existing/new companies in SME sector are as under:

1.     Absence of adequate and timely banking finance

2.     Limited capital and knowledge

3.     Non-availability of suitable technology

4.     Low production capacity

5.     Ineffective marketing strategy

6.     Constraints on modernisation & expansion

7.     Non- availability of skilled labour at affordable cost

8.     Follow up with various government agencies to resolve problems due to lack of man power and knowledge etc.

It is very important to empower the SME sector to utilize the limited resources (human & economic) they have in an optimum manner. The SMEs need to be educated and informed of the latest developments taking place globally and helped to acquire skills necessary to keep pace with the global developments. SMEs are now exposed to greater opportunities than ever for expansion and diversification across the sectors. Indian market is growing rapidly and Indian entrepreneurs are making remarkable progress in various Industries like Manufacturing, Precision Engineering Design, Food Processing, Pharmaceutical, Textile & Garments, Retail, IT and ITES, Agro and Service sector.

To counter the challenges faced by SME sector and grab the opportunities in the market, we Nextgen consulting has created a hub of all 360-degree services to support the SME sector. We provide with Business support, change management, fund raising, legal, IT, secretarial, manpower hiring & Marketing services to support out clients. Personalised services are offered by senior professionals to MSME.  Connect us at +919871516781 Rajeev Jain or contact.nextgenconsulting@gmail.com for inquiries/ support.