It is these features of SMEs that make them an ideal target for technological up gradation through technological cooperation with foreign and local enterprises, with R&D institutions and centres of technology development. Poor financial situations and low levels of R&D, poor adaptability to changing trade trends, non-availability of technically trained human resources, lack of management skills, lack of access to technological information and consultancy services and isolation from technology hubs, etc. are some of the reasons why these SMEs are not being able to surge ahead. SME‘s CONTRIBUTION TO INDIAN ECONOMY: Growth of the Indian economy has accelerated to 8% and efforts are on to further propel it to 10%. Undoubtedly, all the segments of the economy, viz. agriculture, industry and services have to improve their contribution to the economy. Growth of small and medium enterprises (SMEs) is a sine qua non for the growth of industry, exports and other segments of the economy. Furthermore, promotion of entrepreneurship is also for sustenance and upward movement of the current growth trajectory of the economy. The SME sector acts as a catalyst in upholding and encouraging the creation of the innovative spirit and entrepreneurship in the economy, thereby helping in laying the foundation for rapid industrial development. Moreover, the sector also serves the vital objectives of employment generation and balanced regional development. Globalization and liberalization of the Indian economy have also brought a host of opportunities for the industrial sector, particularly the SME segment. While SMEs have responded to competition reasonably satisfactorily, there is scope for increasing their export potential, domestic market share and developing them as serious players in the global value chain. SME s represents the largest proportion of the manufacturing sector in every country. In India, 95 percent of the industrial are in small- scale sector with 40 percent addition in the manufacturing sector and 6.29 percent contribution to the Indian Gross Domestic Product SME Current Issues i. Lending Facilities to SMEs- The lending to the SME sector grew by 69% between 2000-01 and 2005-06. But there exists a stark disparity amongst small players and big players within the SMEs sector. Loans to bigger companies are growing at a faster pace than loans to the SSI sector. By the end of 2006, the proportion of SSI loans to total loanshas remained small at 6.4%.
It is these features of SMEs that make them an ideal target for technological up gradation through technological cooperation with foreign and local enterprises, with R&D institutions and centres of technology development. Poor financial situations and low levels of R&D, poor adaptability to changing trade trends, non-availability of technically trained human resources, lack of management skills, lack of access to technological information and consultancy services and isolation from technology hubs, etc. are some of the reasons why these SMEs are not being able to surge ahead. SME‘s CONTRIBUTION TO INDIAN ECONOMY: Growth of the Indian economy has accelerated to 8% and efforts are on to further propel it to 10%. Undoubtedly, all the segments of the economy, viz. agriculture, industry and services have to improve their contribution to the economy. Growth of small and medium enterprises (SMEs) is a sine qua non for the growth of industry, exports and other segments of the economy. Furthermore, promotion of entrepreneurship is also for sustenance and upward movement of the current growth trajectory of the economy. The SME sector acts as a catalyst in upholding and encouraging the creation of the innovative spirit and entrepreneurship in the economy, thereby helping in laying the foundation for rapid industrial development. Moreover, the sector also serves the vital objectives of employment generation and balanced regional development. Globalization and liberalization of the Indian economy have also brought a host of opportunities for the industrial sector, particularly the SME segment. While SMEs have responded to competition reasonably satisfactorily, there is scope for increasing their export potential, domestic market share and developing them as serious players in the global value chain. SME s represents the largest proportion of the manufacturing sector in every country. In India, 95 percent of the industrial are in small- scale sector with 40 percent addition in the manufacturing sector and 6.29 percent contribution to the Indian Gross Domestic Product SME Current Issues i. Lending Facilities to SMEs- The lending to the SME sector grew by 69% between 2000-01 and 2005-06. But there exists a stark disparity amongst small players and big players within the SMEs sector. Loans to bigger companies are growing at a faster pace than loans to the SSI sector. By the end of 2006, the proportion of SSI loans to total loanshas remained small at 6.4%.