INDIA INC. IS GROWING AT BEST. WHY YOU NEED TO FOCUS ON SMEs IN RURAL INDIA?
December 10, 2015 — Business, Rural India, SME, Startups
We are fortunate that our country is incredibly blessed with immense entrepreneurial talent. The Economic Censuses demonstrate the huge size and growth of entrepreneurial activity in India. The last decade has shown the dynamism that is possible in this sector under the right circumstances and with the proper policies. Having knowledge about SME, since I run my own business which I started a few years back, I can say that many of the leading corporate houses existing today belonged to the SME category at the turn of the century.
The infrastructure quality affects the growth prospects of SMEs to a great extent, especially in a developing country like ours, where 77% of the population constitutes the rural masses.
I guess it won’t be incorrect to say that numerous rural areas still suffer due to the pathetic state of basic infrastructure like transport, telecommunications and electricity. The integration of rural industries with mainstream industries is proving to be difficult for these reasons. This, in fact, has been identified as a key deterrent to the growth of SME clusters in rural areas.
Today, most SMEs in rural areas undertake manufacturing using old methods and outdated technology. But today, the competition is cut-throat, unlike in the past, when buyers were simply looked forward to purchasing the best products at the lowest prices. Times have certainly changed.
There are additional challenges to be met. The inundation of low-budget products from China has made it even more difficult for Indian manufacturers to compete solely on the price front.
So, my idea is to improve the current situation of SMEs in rural India which will catapult India’s position in the global market & increase employment opportunities.
– rishabh (iNFOTYKE)