SME Market Growth
- SME sector has witnessed notable expansion and development over the decades, contributing to one-third of India's GDP. With the significant contributions to the country's socio-economic growth and creating employment opportunities, this segment holds immense potential in supporting India's ambitious vision of a USD 40 trillion economy by 2047.
- Over the past decade, the SME Index has delivered annualized gains of up to 195%. Rs. 1,000 investment in September 2013 would be worth Rs. 1.03 lakh by 2023, translating to a staggering 100x return over a decade
- The government of India has provided unprecedented support to the MSME industry to facilitate growth. At the Union Budget FY 2023-24, a revamped Credit guarantee scheme for MSMEs with credit infusion of Rs 9,000 crore was announced
- 96% of the industrial units belong to small companies in the Indian economy. The small companies account for 40% of the nation's overall industrial production and 42% of all Indian exports. Small companies also offer various opportunities in the rural and urban areas of the country.
- India has witnessed rapid growth in start-ups. According to the Ministry of Commerce and Industry, the recent start-ups of around 10,000 were approved in 156 days in opposition to the initial 10,000 which got approved in 808 days. Also, the Tier-2 and Tier-3 cities are said to account for 49% of the start-ups.
- MSME created 120 million jobs across all industries in India. Micro and small enterprises play an important role in the economy because they created 120 million jobs across industries and 33% account for India's GDP