Pantomath Sabrimala

About SME's

Indian economy is the seventh-largest in the world measured by nominal GDP and the third-largest by purchasing power parity (PPP). The long-term growth prospective of the Indian economy is positive due to its young population, corresponding low dependency ratio, healthy savings and investment rates, and increasing integration into the global economy. Indian economy has the potential to become world's 3rdlargest economy by the next decade, and one of the two largest economies by mid-century. And the outlook for short-term growth is also good as according to the IMF, the Indian economy is the "bright spot" in the global landscape.

Small and Medium Enterprises play a vital role for the growth of Indian economy by contributing 45% of the industrial output, 40% of exports, 42 million in employment, create one million jobs every year and produces more than 8000 quality products for the Indian and international markets. As a result, SMEs are today exposed to greater opportunities for expansion and diversification across the sectors.

Flourishing amidst a challenging environment, SMEs of India experienced several highs and lows in the past few years. With the Indian economy expected to emerge as one of the leading economies in the world and likely to become a $5 trillion economy by 2025, major impetus is being given to strengthen the backbone of our economy - the SME sector. Comprehending the significance of the SME sector visa-vis lending numbers to the job market, contribution.

The growing importance of SMEs, which account for about one-sixth of India’s total GDP, is manifesting itself in various quarters of the economy. Government is trying to push it forward with a number of plans to foster technology, innovation and quality in SMEs. India’s SME sector is well equipped to grow, and the fundamental drivers are in the right place. Continued empowerment of SMEs will enable them to attain high and sustainable growth in the long-run.

SME scrips in India have provided handsome returns. SMEs typically, could be perceived as high risk high return opportunity. The comparative history of the SME capital market has shown significant increase in terms of raising funds and increasing investor base. Till date, over 380 companies have got listed and have raised capital worth more than Rs. 35,000 Crores. It is safe to say that the SME bourses are catching up to the main boards. Therefore, a properly evaluated SME business could turn out to be a rare opportunity for the investors especially because of thin capital base, emerging business scale and the growing popularity of SME bourses in India.