As we all know, Govt ofIndia is giving much emphasis these days on the development of Small and Medium Enterprises (SMEs). Which of the following statements reflects the importance of the SME sector in the India economy?begin{enumerate}item The Govt is following a policy of keeping some items reserved for SMEs only. Hence a good number of items for local consumption come from these alone.item The main advantages of SMEs are reduction of regional imbalances, low investment, greater operational flexibility and low production cost. This helps in good control over prices of such items in local markets.item A very large number of people are employed in this sector and this sector is the second largest employer in India, after agriculture.end{enumerate}

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Question [CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]

As we all know, Govt ofIndia is giving much emphasis these days on the development of Small and Medium Enterprises (SMEs). Which of the following statements reflects the importance of the SME sector in the India economy?

A	Only 1
B	Only 2
C	Only 3
D	All the above

Explanation:

Detailed explanation-1: -MSMEs contribute more than 29% to the GDP and are responsible for 50% of the country’s total exports. They are also accountable for one-third of India’s manufacturing output. MSMEs employ more than 11 crore people, and the aim is to grow this number to 15 crore in the coming years.

Detailed explanation-2: -Importance of Small and Medium-sized Enterprises SMEs play a vital role in shaping a country’s economy. They can be considered an attractive and huge innovative system. Due to the socially and economically beneficial effects of the SMEs, the sector is considered an area of strategic interest in an economy.

Detailed explanation-3: -SME stands for small and medium-sized enterprises. These are businesses with investment, turnover, and workforce below a certain threshold. In India, SMEs comprise both manufacturing and service enterprises.

Detailed explanation-4: -In Somalia, the term is SME (for “small, medium, and micro enterprises"); elsewhere in Africa, MSME stands for “micro, small, and medium enterprises". An SME is defined as a small business that has more than 30 employees but less than 250 employees.

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