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NSIC
Building SMEs to win Global
Markets
NSIC
Scenario of SMEs in India
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Over 12.8 million Small Industries.
31 million people are employed by
SMEs.
Contribute 40% of total Industrial
Production.
Accounts for 33% of India’s Exports.
Contribute around 35% of total Exports.
Contributes 8% of GDP.
NSIC
Major sectors of Exports by
SMEs of India
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Food Processing
Marine Products
Agricultural Inputs
Chemical & Pharmaceuticals
Engineering, Electrical & Electronics
Textile & Garments
Contd…/-
NSIC
Major sectors of Exports by
SMEs of India
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Leather & Leather Goods
Bio Engineering
Sports Goods
Plastic & Rubber Products
NSIC
SME’s & their contribution in Indian Exports
Product
Sports Goods
Readymade Garments
Woolen Garments, Knitwear
Processed Food
Marine Products
Leather Products
Plastic Products
Cosmetic, Basic Chemicals &
Pharmaceutical products
Engineering Goods
% of SME in total
exports
100
90
35
65
29
80
45
55
30
NSIC
Effect of Globalization and Liberalization
on SMEs in India
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Stiff competition both Quality wise and
Price wise.
Unprecedented opportunities with serious
challenges.
Emergence of new target markets.
Opportunities to exploit technological
advantages.
Technological Obsolescence.
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WTO norms and Indian SMEs
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Emergence of Global Village.
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Barriers free International Trade.
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Global Competition.
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Regulation of standards of quality &
ownership (TPRIPS).
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Regulation of Investment Flow (TRIMS).
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Emergence of Service Sector.
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Erosion of restrictions of Entry.
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Institutional Support and Government
Policies for Indian SMEs
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Formulation of MSMED Act 2006
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Establishment of specific funds for SME’s
promotion and development.
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Setting up of National Manufacturing
Competitiveness Council (NMCC).
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Creating awareness about intellectual
property rights for SMEs benefits.
Contd…/
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Institutional Support and Government
Policies for Indian SMEs
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Market Assistance and Export Promotion
Support.
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Support for Credit Rating of SMEs.
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Benefit to SMEs under International
Cooperation Scheme.
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Liberalizing FDI for SMEs.
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Setting up of Intellectual Property Advisory
Council.
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How to be competitive in the
Global Market
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Adoption to technological changes /
Technology Infusion
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Vertical Integration of SMEs with Global
TNC’s.
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Creation of linkages, network with
Foreign Buyers.
Contd…/-
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How to be competitive in the
Global Market
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Adoption to Quality Management
Standards & Quality Technology Tools.
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Horizontal Cooperation through
Clustering & Networking.
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Lean Manufacturing process.
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Conclusion
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SME’s the largest business community.
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Post WTO – an opportunity for expanded
International growth.
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To become global player SMEs need to
Adopt, Re-vitalize and Reposition.
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Adoption of e.commerce as an important
tool.
Contd…/-
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Conclusion
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Access to markets and technologies in
today’s globalized economy.
Need for strategic approach for converting
globalization challenges into opportunities.
Identification of factors affecting
international competitiveness in terms of
quality and cost.
SMEs to reach International market
potential for their goods and services.
NSIC
Thank You