Leading SMEs of India 2022

6 Overview of the Indian MSME Sector Small and medium sized enterprises are considered to be the powerhouse of a country’s economy. Government estimates suggest the presence of over 63millionmicro industries, 0.33million small enterprises and around 5000 medium enterprises in India. SMEs & MSMEs contribute to nearly 30% of the country’s GDP and account for 50% of its exports. Over the years, the SME & MSME segment has been contributing significantly to the economic development and prosperity of the country and are drivers of social upliftment as well as entrepreneurial spirit. They are the second largest generator of employment in the country, only next to agriculture. In the industrial segment, MSMEs and SMEs act as ancillary units and help in bringing about inclusive industrial development. They are, however, not restricted to the industrial segment; in fact, MSMEs and SMEs are now thriving across a range of diverse industries and regions across the country and are catering to both domestic as well as international markets. SMEs & MSMEs Contribution to the Indian Economy, FY 2021 GDP 30 % 50 % Total Export Source: D&B Research, PIB There is significant optimism about Indian goods across the borders – India’s merchandise exports crossed a target of $400 by mark in FY2022. Indian goods and services are being well received by international consumers even as countries diversify their sourcing destinations in an attempt to reduce dependency on Chinese imports, especially in the wake of the COVID-19 pandemic. This bodes well for Indian exporters, as there lies significant opportunity for them to emerge as alternate global supply chain partners to the world. The Government of India has also been very supportive in this regard, and the push towards making India ‘Aatmanirbhar’ or self-reliant, has paved the way for a plethora of reforms and policies that are helpful for the SME andMSME players, be it through financial support, investment opportunities, skill development, training, technology sharing, handholding etc. However, despite these policy interventions and support, there’s still a long way to go to make SMEs and MSMEs realise their true potential and unlock the inherent value within the sector. Some of the challenges that players in this segment have to deal with include lack of easy access to funds, inadequate skills and technical expertise, cost-inefficiencies, poor infrastructure, etc. A beneficial ecosystem that would facilitate easy and equitable access to trade finance and the latest technology is the need of the hour to make the sector globally competitive, foster the spirit of entrepreneurship, and launch India on the world’s map as a leading manufacturing hub. Dun & Bradstreet