Role of SMEs in making India Atma Nirbhar

1. Role of SMEs in making India Atma Nirbhar    The Hindi word "​Atmanirbhar​" means self-reliant or self-sufficient. Atmanirbhar Bharat           is a program that was initiated in May 2020 by our honorable Prime Minister, Mr Narendra                   Modi. "Atmanirbhar Bharat" was introduced as a ray of hope when the COVID-19 ravaged           nations across the world, and crumbled economies like playing cards. This policy provides the             budding and current S with a forum.    SMEs are driving the Indian economy with vigour and gusto, leading to more than 17 percent                 of the GDP. There has been a spectacular growth in the number of small and medium-sized                 companies in the last decade, which has risen to approximately 48 million. With SMEs               providing jobs to about 40 percent of the working class in India, the public sector has now                 become a thing of the past, serving as the only source of employment. Without much                   government commitment, SMEs are capable of reducing unemployment, which makes them           operationally more reliable. Approximately 45 percent of domestic industrial production and           40 percent of total exports are contributed by SMEs, thus helping to increase manufactured                 goods and exports.    Setting up large-scale factories involves a vast quantity of raw materials and           well-established infrastructure, which limits them to specific geographical regions. SMEs are         not geographically bound and typically involve the establishment of minimum raw materials           and average to below-average skills, which makes the establishment of SMEs a relatively             convenient sector. Policy Atmanirbhar Bharat offers various financial support for small and           medium-sized enterprises, which allows small and medium-sized enterprises to take         advantage of capital investment without much difficulty. This further encourages SMEs to                                                                                                                                                                                                                                                                                          

2. build their footing in a much shorter period, even in remote locations. With more and more                 small and medium-sized businesses developing in rural areas, job opportunities are emerging.    Different ​policies and schemes have been launched by the Government of India that provide               SMEs with the platform to initiate and expand. In collaboration with SIDBI, a government               initiative called "Indian Opportunities Venture" has been set up to allocate around 50 billion         INR to micro, small and medium-sized enterprises. In order to enhance the power,             competitiveness and competence of SMEs, the Government of India follows a "cluster-based           approach." Around 20 products were reserved solely for the production of SMEs, giving them             space to proliferate. Various accelerators, incubators and investors are further encouraging           SMEs.    Furthermore, the percolating mobile and internet networks allow ​small and medium-sized             enterprises to expand their business to both rural and international markets. Approximately               43% of SMEs currently resort to ​digital marketing for promotion and trading purposes.               Various social networking applications, such as Facebook, WhatsApp, Instagram, etc., enable           SMEs to directly meet their customers even in the most distant corners, removing the woes of                 intermediary dependence as well as geographical barriers. The number of smartphone users in           India is expected to cross up to 700 million by the year 2022. Undoubtedly, this would open up                     a broader market and generate greater prospects for the development of SMEs. Even the             government is helping to equip small and medium-sized companies with digital platforms               such as Government E-Marketplace, which were previously open only to large enterprises. By           listing their goods and services on these websites, SMEs may make use of big government               projects. With an ever-growing demand and adequate support for its growth and development,             small and medium-sized enterprises have the potential to become major stakeholders in the             Indian economy. Growth in SMEs will undoubtedly increase the buying power of people, reduce             the urban-rural income gap, promote regional development, and generally boost the overall           quality of life. SMEs are thus skilled enough to support the five economic pillars of               Atmanirbhar Bharat.