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From the Prime Minister’s speech at the Rashtrapati Bhawan to the kite flying competitions at every rooftop, the entire nation is painted in the color of patriotism. We have all the reasons to celebrate our freedom, the freedom that our great leaders have given us by fighting the atrocities of the British Raj.
Freedom paved the way to plethora of positive changes in the social structure including law, religion, politics and not to forget, the Economy! Talking about the economy, the nation has gone through plethora of reforms since the time of Independence and SMEs (Small & Medium Enterprises), which is considered to be the backbone of Indian economy has largely contributed to the economic freedom of the nation.
In the words of Jawahar Lal Nehru, “Small scale industries are of very special importance in India. If we lack capital, we do not lack manpower, and we must use this manpower both to add to the wealth of the country and to reduce unemployment”.
On the 70th year of Independence, let’s look at a few facts on SMEs and see how they have brought the economic independence to India.
The history of SMEs in India can be traced back to the Gandhian model of self-sufficiency. From the struggle of Independence to the economic liberalization, SMEs have stood the test of time. SMEs faced a lot of challenges before independence but post Industrial liberalization, few key policies like the Small Scale Industrial Policy in the 90s was implemented to improve the status quo of these units. Furthermore, with the implementation of the Five Year Plans, the government created a favorable climate for the growth of SMEs. Ever since, there are various boards set up for SMEs which have boosted the growth exponentially.
On the 70th year of Independence, let’s look at a few facts on SMEs and see how they have brought the economic independence to India.
Employment Generation: SMEs bless the country by providing employment to over 80 million persons. Research suggests that a given amount of capital invested in small-scale unit provides more employment in large undertaking. Thus, SMEs are able to solve one of the biggest problems of Indian economy i.e. unemployment to a great extent.
Contribution to GDP: SMEs contribute 17% to the GDP which is considered to be the major determinant of the economic growth of any country.
Production: With 36 million units at present, SMEs has a good position in India when it comes to the production. According to statistics, SMEs contribute 45% to the total manufacturing and 40% to the total exports of the nation which are closely related to the distribution of income and wealth and also, the economic growth of the country.
With the launch of Make in India and the implementation of the GST bill, the SME is going to grow exceptionally. If reports are to be believed, contribution of SMEs to the country’s gross domestic product (GDP) is expected to increase to 22% by 2020, from the present 17%, which can trigger the economic development of India in a major way.
Therefore, SMEs are the manifestation of India’s socio-economic development and has successfully met with the country’s long-term expectations in terms of contribution to GDP, industrial base, exports & employment.
Since SMEs are the backbone of Indian economy so let’s create a new era of freedom and be business ready. Let’s break all the barriers and make our foundation strong.
Happy Independence Day!
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