India which is home to about 4.88 crore small and medium business (SMB) units is all set to become the largest SME nation globally, a study by market research firm Zinnov has said.
According to the report, the SME sector in India, which is all set to become the largest SME nation globally, has given employment to around 8.11 crore people.
“The SMB sector in India is growing at an exceptional rate and has the potential to be one of the primary drivers of the Indian economy. Today 1.5 million SMBs export their products or services outside India which is a sign of the sector’s rapid evolution,” Praveen Bhadada, Director — Market Expansion, Zinnov said.
As per the report, the Indian SMB sector gives employment to around 8.11 crore people in India which has increased at a (compound annual growth rate) CAGR of 5.29 per cent.
“The sector is growing to be the largest employment generator in the country and today represents the true entrepreneurial spirit on the Indian business community,” Bhadada added.
The Indian SME space today is largely dominated by micro scale businesses, contributing 95 per cent of the SME landscape, followed by small scale businesses contributing 4.8 per cent and the rest 0.2 per cent by medium scale businesses.
The report further noted that out of the 4.88 crore SMEs around 55 per cent are located in urban areas while the rest 45 per cent constitutes to the rural regions.