A New Deal for Small and Medium Enterprises in India

Abstract:     
In this era of globalization, when large Indian enterprises are on a mergers and acquisition spree and are entering the international arena, the Indian Small and Medium Scale Enterprises (SME) sector seems to be lagging behind in the race. The reasons are immaterial and the result is the concern. After the enactment of 'The Micro, Small and Medium Enterprise Development (SMED) Act' in June 2006, everybody interested in the issue is again hopeful of a bright and prosperous future for the Indian SME sector. But is the repeated redefinition of SMEs (on the same age-old investment parameters) a solution for survival in today's cruel battle? Or does it require broadened horizons of thinking as well as actions from the people concerned? The protective shield provided by the Government to SMEs in India up till now has been removed, and this sector is preparing to sail into uncharted waters at the international level. When automation, technological upgradation and modernization (requiring very high capital investment) are the new sustainability norms, Indian SMEs are still finding ways of coping with investment limits forced on them. The time has now come to recraft our policies in tune with the current requirements.

Accepted Paper Series