Indian SME Knowledge Forum
Indian SME Knowledge Forum
Indian SME Knowledge Forum

About SMEs

Indian SMEs represent the model of socio-economic policies of Government, which emphasise job creation at all levels of income stratum and diffusion of economic power in the hands of few thereby discouraging monopolistic practices of production and marketing; and in all prospects contributing to growth of economy and foreign exchange earning with low import-intensive operations.

Indian SMEs also play a significant role in Nation development through high contribution to Domestic Production, Significant Export Earnings, Low Investment Requirements, Operational Flexibility, Location Wise Mobility, Low Intensive Imports, Capacities to Develop Appropriate Indigenous Technology, Import Substitution, Contribution towards Defense Production, Technology – Oriented Industries, Competitiveness in Domestic and Export Markets thereby generating new entrepreneurs by providing knowledge and training.

Despite their high enthusiasm and inherent capabilities to grow, SMEs in India are also facing a number of problems like sub-optimal scale of operation, technological obsolescence, supply chain inefficiencies, increasing domestic and global competition, fund shortages, change in manufacturing strategies and turbulent and uncertain market scenario. To survive with such issues and compete with large and global enterprises, SMEs need to adopt innovative approaches in their operations. SMEs that are innovative, inventive, international in their business outlook, have a strong technological base, competitive spirit and a willingness to restructure themselves can withstand the present challenges and come out successfully to contribute 22% to GDP.

Definition of MSMEs in India

Manufacturing Enterprises – Investment in Plant & Machinery
Micro Enterprisesupto Rs. 25Lakhupto $ 62,500
Small Enterprisesabove Rs. 25 Lakh & upto Rs. 5 Croreabove $ 62,500 & upto $ 1.25 million
Medium Enterprisesabove Rs. 5 Crore & upto Rs. 10 Croreabove $ 1.25 million & upto $ 2.5 million
Service Enterprises – Investment in Equipments
Micro Enterprisesupto Rs. 10Lakhupto $ 25,000
Small Enterprisesabove Rs. 10 Lakh & upto Rs. 2 Croreabove $ 25,000 & upto $ 0.5 million
Medium Enterprisesabove Rs. 2 Crore & upto Rs. 5 Croreabove $ 0.5 million & upto $ 1.5 million

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