The Small and Medium Scale Enterprises (SMEs) are the center point which shapes the economy of India. The development of the Indian economy depends greatly on the growth and advancement of the small and middle-scale industries and business organizations. With a vast network of millions of units which creates the majority of employment opportunities, both in the rural and the urban areas, the SME contributes to around forty percent of exports and forty-five percent of outputs by manufacturing of several products.
The SME sector is widespread and includes various departments like the textiles, food and processing, leather, spice, light to heavy engineering and several others. Though MSMEs have contributed greatly to the Indian economy, yet they have to undergo certain challenges which might include:
· Inability to obtain adequate credit within the required time.
· Credits are of high costs.
· Requirements of insurance or collateral.
· Difficult to access the equity capital.
· Issue with the rehabilitation of the poor enterprises.
Owing to these issues faced by the SME sector, the Indian Government along with the Reserve Bank of India, has launched several schemes and committees to enhance the performance of the MSME. The latest scheme launched by the Prime Minister is the ‘Task Force’ on the SME sector. This scheme provides an extensive framework for the development of the SME sector on a long-term basis. The ‘Task Force’ scheme of the Government aims to eliminate the serious concerns and issues which are related to the obtaining of credit, infrastructure, marketing, technology, labour, development of the necessary skills, exit policy, taxation and specific matters which are related to zonal issues like that of Jammu & Kashmir and North Eastern Region. The ‘Task Force’ scheme of the Government for the SMEs also provides a number of action plans which are time-specific.
The SMEs cover a wide range of industry sectors which are aimed at raising the efficiency, excellence, productivity, profitability and sustainability of the infrastructure of the Indian economy. With the advent of the technological features in the MSME sector, the country hopes for long-term benefits and expansion of the industries. This will directly be proportional to the growth and development of the nation