After independence we have seen our fair share of
conflicts, struggles, and setbacks. India still faces many challenges, but now
it is poised to reach a higher position on the world scene than at any previous
time.
A roar of lion is filled with victory and joy. It
is time for SMEs to be fearless like lions. The SME community
can gain a lot if they contribute towards this initiative of Make in India.
Small and Medium Enterprises (SMEs) play a vital
role in the industrial development of any country. The importance of this
sector is well recognized worldwide due to its significant contribution to
gratifying various socio-economic objectives, such as higher growth of
employment, output, promotion of exports and fostering entrepreneurship.
Recently, the Prime Minister charmed the global
community and national industries with his enthusiastic promotion of his “Make in India” campaign, inviting
international manufacturers to come and conduct their core operations in
India. Global businesses are looking towards India and creating new
opportunities for small enterprises and start-ups.
India’s economy is divided between agriculture which accounts for a
quarter of the gross national product, manufacturing constituting another
quarter, and the high-tech service sector which now makes up a full half of the
gross national product. Striving to become a “knowledge superpower,” it hopes
to skip the intermediate step of industrial development that has preceded other
nations’ march into the Information Age.
The primary factors of production, large availability of labour, and
ready access to capital work quite well to lay a solid foundation for a
thriving manufacturing sector in India. Labour has traditionally been
seen as a major strength, even though historically labour has
been regarded as cheap but relatively unskilled. That is changing quickly,
because even though businesses are still able to avail the service of
indigenous labourers at increasing but still cost-effective
rates, overall, the training, skill and expertise of the average Indian
worker has shot up significantly over the past few decades.
As for capital, banks and financial services companies are ready,
willing and able to provide loans to new businesses, and SMEs in the manufacturing
sector in particular have various government schemes and subsidies they can
profitably utilize. Banks have seen credit and restructuring default rates go
down compared to other sectors, and are willing to provide capital on demand to
most.
The government is attempting to pitch these factors to invite foreign
manufacturers interested in establishing India as their base. After weathering
this crunch time, it is now gradually beginning to pick up again and has
returned to solid growth, so that it remains on course for the 2025 target of
accounting for close to a hundred million jobs.
So now roar with all the power of a mighty lion. Be fuelled, not
fooled!
