With the rising competition, Indian SME sector needs to be connected to global markets, so as to leverage the benefits of technology transfer, remain innovative and sustain in the market.
2. Current status of SMEs in India
Domestic Market
Sl. No. Sectors/Parameters Contribution
1 Industrial Input 45%
2 Exports 40%
3 % of GDP 8%
4 Employment 42 million
5 Employment
generation/year
1 million
6 Products > 8000
4. SWOT ANALYSIS
STRENGTH WEAKNESS
1. Advantages in ICTs (Internet)
2. High in innovation
3. Quality products at competitive
prices
4. Strong integration with domestic
market
1. Access to Global markets
2. Investment scale and scopes
3. Low technological upgradation
4. Low risk-bearing capacity
5. Relatively/largely smaller firms
6. Lack of industrial work culture
OPPORTUNITIES THREATS
1. Globalisation
2. Explore new niche markets
3. Reap technological advantages
4. Integrate with Global Supply Chain
1. Heightened International
competition
2. Issues of standards and
International
compatibility
3. Intellectual Property concerns
4. Political Risks
5. Corruption
6. Rule of law concerns
5. Opportunities to Indian SME sector
Ways to
integration
of Indian
SMEs
Globally
Direct and
Indirect
exports
International
Alliances
Inter-firm
clustering
and
networking
Participants in
Mergers and
Acquisitions
6. Barriers & Impediments for SME Globalization
Bottlenecks
Lack of
collaboration
between
SMEs
Gegoraphical
Imbalances
Protectionist
mindset of
countries
Government
Policy
Support