SMEs are crucial for the Indian defence sector due to their flexibility, diversity, low cost inputs, etc. The ‘Make in India’ programme is likely to enable the SMEs to generate high competitive producing units. Large enterprises have joined hands with the SMEs for continuous production of latest technologies in the context of the the Indian defence system.
The companies have also come forward to meet regular requirements of defence equipment and lessen India’s dependence on foreign imports. The opening of defence industry in India and private participation in the defence sector would transform India into a defence industrial base, capable of producing world class products at highly competitive prices, and produce sub-systems and components of primary equipment in hassle-free fashion.
According to report by the National Association of Software and Services Companies (NASSCOM), the number of companies in the SME sector was expected to register a CAGR of 4% till 2015 to reach 48.5 million.
SMEs should be considered partners for progress as a vibrant SME sector can derive the maximum benefits with current developments. SMEs that can build a strong technological base and an international business outlook will be able to withstand challenges.
According to report by CII:
l The SME sector contributes significantly to India’s economic prosperity through its major impact on employment generation, social influences, development and uniform wealth distribution.
l SME clusters promote productivity, innovation and entrepreneurship at the micro level and provide networking and business synergy opportunities.
l SMEs in India contribute 50% of the industrial output and 40% of total exports.
l SMEs in India face various challenges in the form of shortage of credit, proper access to market and business information. There is urgent need for policy intervention to support these SMEs in sustaining and enhancing their business competitiveness.