SMEs have witnessed a significant progress in terms of growth achieved growth rate of the Indian SMEs was 11% every year till 2010-11. The highest growth in the last 5 years was recorded during 2011-12 (18.45%) whereas during year 2012 -13 and 2013-14, the growth rate was around 14% and 12%, respectively. Nearly, 1500 lakh people were employed in the SMEs. Flourishing amidst a challenging environment, the SMEs of India experienced several highs and lows in the past few years. With the Indian economy expected to emerge as one of the leading economies in the world and likely to become a $5 trillion economy by 2025, major impetus is being given to strengthen the backbone of our economy - the SME sector. Comprehending the significance of the SME sector vis-a-vis lending numbers to the job market, contribution to GDP and fostering entrepreneurship and innovation, numerous initiatives by our current government have been the highpoints. SME will play very important role to make India to be the world's third-largest economy by 2032.
Despite the pivotal role and strategic importance in the context of industrial development and economic growth of the country, the MSME sector experiences several constraints and challenges. Several key issues remain to be addressed properly and measures yet to be taken in the interest of sustainable industrial development. This Conference on Policy planning of SME sector have identified some key issues such as facing problem of delayed payments from their buyers which adversely impacts their working capital, lack of adequate credit and capital, technological obsolescence, dilatory and cumbersome regulatory practices for clearance and poor adaptability to emerging international trends. The roadmap for SME development should include a target for increase in the share of their contribution from the present 8% to 15% by 2020, a substantial increase in generation of employment avenues up to 50%, an enhancement in MSME contribution in the key public and private industry sector by meeting the growing domestic demand, indigenization and important substitution.