The Export Scenario of Indian SMEs

Indian SMEs have achieved considerable progress in terms of growth of number of units, gross output, employment generation and exports, yet  exports of manufactured goods from India from the small scale sector still constitutes less than 10 percent of the total output of this sector.  This is due to the vast domestic market for manufactured goods in India; the Indian small entrepreneur hesitates to venture into the export markets due to his inability to undergo risks of international trade. 

It also needs to be emphasised that the modern sector of the Indian SMEs, which uses latest state-of-the-art technologies, has already developed a niche in establishing sound sub­contracting arrangements among large enterprises in India in the automobiles, electrical, electronics, chemicals, pharmaceuticals, software development and other sectors. 

Indian SMEs have already attained a status, in terms of technologies and managerial skills, to enter into supply arrangements for a number of intermediate products to support the output of large industries at costs and standards which are internationally competitive. SME’s contribution to exports is significant, more than 50 percent including indirect exports.  Their contribution is particularly phenomenal and more than 50 percent in marine products, processed foods, woollen garments and in traditional products.

 Indian SMEs achievements in the  consumer durables industrial electronics and software development have been acknowledged all over the world and exports of electronic soft and hardware products from India have already achieved a niche in the international markets.