The components SMEs are riding a boom phase, driven by demand from global auto manufacturers
New Delhi, Oct. 2
Small and medium enterprises (SME) have not kept pace with the country's economic growth because of their inability to access finances, industry experts point out.
According to Mr David Emery, President, International Partnerships & Asia Pacific, Dun & Bradstreet, said: "Recent research at the World Bank has re-established that inability to access finance may be one of the reasons why we do not see a robust correlation between SME prevalence and economic growth. Therefore, the increasing strength of the financial system in the country will help Indian SMEs continue on their growth path. Another important aspect in this journey would be to ensure enhanced global visibility to these SME firms".
Further, Dun & Bradstreet (in association with the SME Rating Agency of India) in its first publication on SMEs called "Emerging SMEs of India" series of publications, said infrastructure and lack of institutional assistance were are among the key hindrances to growth for SMEs.
The first publication in the series titled "Emerging Auto Component SMEs of India" stresses on the role of Indian auto components SMEs in view of the fast paced growth seen in the sector. According to the publication, auto components SMEs are one the fastest growing within the SME category of industries. These units are key contributors to the total production of auto components and also have a significant share in the exports of the industry.
It adds that as part of a highly fragmented industry, these companies mostly are part of the unorganised sector.
The components SMEs are riding a boom phase, driven by demand from global auto manufacturers. Further, the industry is undergoing a major restructuring and existing companies are expected to move up in the value chain to a higher tier.