The Micro, Small and Medium Enterprises (MSMEs) are aptly regarded as backbone of the Indian economy. Micro, Small and Medium enterprises (MSME) is a generic term used to describe small scale industrial (SSI) units and medium-scale industrial units. Any industrial unit with a total investment in its fixed assets or leased assets or hire-purchase asset upto Rs10 million is considered as a SSI unit and investment upto Rs. 100 million is considered as a medium unit. In addition, an SSI unit should neither be a subsidiary of any other industrial unit nor can it be owned or controlled by any other industrial unit. According to the union ministry, MSMEs, with addition of union medium enterprises in their fold are now a sector that contributes up to 40% to the gross industrial manufacturing value added to the economy, 35% to India's exports directly and around 8% to India's GDP.
In spite of their immense contribution the sector is largely informal and unorganized: 90% of the units are not registered. The sector is highly heterogeneous. It produces more than 8000 products ranging from handmade stuff to high tech components and machines. Still, 95% of the SME owners don't have access to any kind of formal institutional credit. Only 20% of the upper MSME is a part of large global supply chains.
The importance of SME sector is undisputed and companies like IndiaMART are acting as torch bearers to present the plight of SME to the government, educating the masses about the significance of SME developments for the country and enlightening MSMEs with the new ICT tools which could be propitious for their business. IndiaMART.com has always been an activist and evangelist in pushing for a better deal for SMEs. These developments only vindicate the efforts made by the company and augment the plans made for the SME growth.
It is also undisputed that policy makers have consistently tried to assist the sector. And now with new B2B matchmaking firms like IndiaMART.com and Alibaba.com. online marketing and matchmaking firms are working with adherence to mark the MSME sector as one of the biggest support for India's GDP and growth. However, due to the unorganized nature of this MSME segment, there has always remained a gap between needs, demands and policy response. No wonder, in context of MSMEs rhetoric prevailed over reason and disappointments over expectations. But, with these newer methods and business matchmaking techniques used by the online market places, there is high hope and space for developments which need to be fulfilled by MSMEs by showing credence toward these marketplaces and their methods.
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