A study by ASSOCHAM revealed that there would be a rise in GDP share by Indian MSMEs including agriculture contribution by a minimum of 5 percent by 2011. It estimated to contribute to about 55% GDP share of India’s GDP by 2011. According to the report, technological upgrading was observed in 55 percent of MSMEs for reducing input costs and increasing production and exports.
Centre, state and local governments had provided many regulations for Micro, Small and Medium Enterprises in India during recession. It was found that the share of MSME GDP was 45% over past six years, from the period of survey. However, there had been innovation and competition among MSMEs with enactment of the Micro, Small & Medium Enterprises Development Act (MSME) 2006.
The study estimated MSME contribution of 45% of the national exports over next five years from the survey period. The export contribution at the time of survey was found to be 38 percent. There were 95% of industrial units in MSME sector, which then contributed for about 40% on value addition and employed more than 600 lakh persons.
It was revealed that bank and financial institutions, mostly in the private sector domain, neglected MSME sector. The MSME sector had only help coming from the public sector banks of India as they meet mandatory requirements for lending MSMEs. The study reported an increase in supplies to the vendors with effective cost factor. Opportunities are provided for SMEs by proposed SME exchanges for raising capital for capacity building and price preference.