Title: Globalisation: Impact on Indian Small and Medium Enterprises
Abstract: Micro, Small and Medium Enterprises (MSME) sector has emerged as a highly vibrant and dynamic sector of the Indian economy over the last five decades. MSMEs not only play crucial role in providing large employment opportunities at comparatively lower capital cost than large industries but also help in industrialization of rural & backward areas, thereby, reducing regional imbalances, assuring more equitable distribution of national income and wealth. MSMEs are complementary to large industries as ancillary units and this sector contributes enormously to the socioeconomic development of the country. Micro, Small and Medium Enterprises (MSME) contribute nearly 8 percent of the country’s GDP, 45 percent of the manufacturing output and 40 percent of the exports. They provide the largest share of employment after agriculture. They are the nurseries for entrepreneurship and innovation. They are widely dispersed across the country and produce a diverse range of products and services to meet the needs of the local markets, the global market and the national and international value chains. Globalisation is bound to impact every economic activity – the small-scale sector is no exception. Along with that World Trade Organisation (W.T.O) agreements and negotiations have thrown up a variety of challenges. The disturbing factor is that most of the small units are unaware of these agreements and negotiations and have no idea as to how they are going to affect them. With a view to build the capacity of the Indian micro, small and medium manufacturing enterprises for overcoming competition in the global markets and facing challenges being posed by the entry of the multi-nationals in the domestic markets Government of India (GoI) has taken various policy measures. The current paper focuses on the contribution of MSMEs, prospects and problems for MSMEs in this highly competitive global era.
Publication Year: 2014
Publication Date: 2014-01-01
Language: en
Type: article
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Cited By Count: 3
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