Small enterprises to contribute 22 per cent of GDP
NEW DELHI: The share of small and medium enterprises (SMEs) in India's gross
domestic product (GDP) is likely to go up to 22 per cent by 2012, according
to an industry lobby report, released here on Sunday.

The Associated Chambers of Commerce and Industry of India (Assocham) said in
the study that the SME sector was upgrading itself technologically.

"Technological upgradation will reduce input costs and increase production,
which will enable SMEs to contribute 22 per cent to India's GDP against 17
per cent by 2012," it said.

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The study, 'SMEs-Tomorrow's Blue Chips', said SMEs, which grew at 35 per
cent over the last two years, would register 40 per cent growth driven by
technological upgradation.

Assocham president Sajjan Jindal said the share of SMEs to the national
exports would be up to 44 per cent from 38 per cent in the next five years.

He said over 3.2 million SME units were spread across the country, producing
around 7,500 items and providing employment to nearly 400 million people.

He, however, said the government should look into the problems small and
medium units face in getting credit from the public banks and financial
institutions.

"SMEs are still neglected by banks and financial institutions, mostly in the
private sector domain. The public sector banks in India are the only hopes
for SMEs," Jindal said.


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