1. Building SMEs to win Global Markets
NSIC
Building SMEs to win Global Markets

2. Scenario of SMEs in India
NSIC
Scenario of SMEs in India
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.

3. Major sectors of Exports by SMEs of India
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Major sectors of Exports by SMEs of India
Food Processing
Marine Products
Agricultural Inputs
Chemical & Pharmaceuticals
Engineering, Electrical & Electronics
Textile & Garments
Contd…/-

4. Major sectors of Exports by SMEs of India
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Major sectors of Exports by SMEs of India
Leather & Leather Goods
Bio Engineering
Sports Goods
Plastic & Rubber Products

5. SME’s & their contribution in Indian Exports
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SME’s & their contribution in Indian Exports
Product
% of SME in total exports
Sports Goods
Readymade Garments
Woolen Garments, Knitwear
Processed Food
Marine Products
Leather Products
Plastic Products
Cosmetic, Basic Chemicals & Pharmaceutical products
Engineering Goods
100 90 35 65 29 80 45 55 30

6. Effect of Globalization and Liberalization on SMEs in India
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Effect of Globalization and Liberalization on SMEs in India
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.

7. WTO norms and Indian SMEs
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WTO norms and Indian SMEs
Emergence of Global Village.
Barriers free International Trade.
Global Competition.
Regulation of standards of quality & ownership (TPRIPS).
Regulation of Investment Flow (TRIMS).
Emergence of Service Sector.
Erosion of restrictions of Entry.

8. Institutional Support and Government Policies for Indian SMEs
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Institutional Support and Government Policies for Indian SMEs
Formulation of MSMED Act 2006
Establishment of specific funds for SME’s promotion and development.
Setting up of National Manufacturing Competitiveness Council (NMCC).
Creating awareness about intellectual property rights for SMEs benefits.
Contd…/

9. Institutional Support and Government Policies for Indian SMEs
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Institutional Support and Government Policies for Indian SMEs
Market Assistance and Export Promotion Support.
Support for Credit Rating of SMEs.
Benefit to SMEs under International Cooperation Scheme.
Liberalizing FDI for SMEs.
Setting up of Intellectual Property Advisory Council.

10. How to be competitive in the Global Market
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How to be competitive in the Global Market
Adoption to technological changes / Technology Infusion
Vertical Integration of SMEs with Global TNC’s.
Creation of linkages, network with Foreign Buyers.
Contd…/-

11. How to be competitive in the Global Market
NSIC
How to be competitive in the Global Market
Adoption to Quality Management Standards & Quality Technology Tools.
Horizontal Cooperation through Clustering & Networking.
Lean Manufacturing process.

12. Conclusion NSIC SME’s the largest business community.
Post WTO – an opportunity for expanded International growth.
To become global player SMEs need to Adopt, Re-vitalize and Reposition.
Adoption of e.commerce as an important tool.
Contd…/-

13. NSIC
Conclusion
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.

14. NSIC
Thank You