Small and Medium Enterprises (SMEs) have emerged as a very important sector of the Indian economy, contributing significantly to the employment generation, innovation, exports, and inclusive growth of the economy. SMEs including Micro firms are the backbone of the socio-economic development of our country. It also accounts for 45 % of total industrial production, and 40% of total exports and contributes very significantly to the GDP. The manufacturing segment within the SME contributes to 7.09% of GDP. They also contribute to 30.50% of services. The total contribution of SMEs including Micro firms to the GDP is 37.54.

Overview of SMEs in India

India boasts a total of 633.9 lakh SMEs including micro firms. Among these, over 99% are micro-enterprises, accounting for 630.5 lakh of the total. Small businesses make up 3.3 lakh, representing 0.5% of all SMEs, while medium enterprises number just 0.05 lakh, or 0.01% of the total. Rural areas host the majority with 324.9 lakh businesses, compared to 309 lakhs in urban areas.*

Of the 633.88 lakh SMEs including Micro Firms, 608.41 lakh are proprietary concerns. Ownership trends show a predominance of male entrepreneurs, with men owning 79.56% of micro-businesses, 94.74% of small businesses, and 97.63% of medium businesses. In contrast, female ownership stands at 20.44% for micro businesses, 5.26% for small businesses, and 2.77% for medium businesses.

*Source Forbes Advisors

SMEs as Investment Opportunities

As India nears its goal of becoming a $5 trillion economy by 2026-27, there is growing interest in the country as a prime investment destination. The SME including Micro Sector in India is expected to reach $1 trillion by 2028.

Its many compelling advantages include a wide array of investment opportunities spanning various industries and supply chain ecosystems, such as manufacturing, textiles, food processing, and agriculture. Additionally, SMEs present the unique opportunity to invest in enterprises outside metropolitan areas, enabling investors to tap into the burgeoning potential of rural SMEs including Micro Firms, which are supported by a growing consumer base, increasing disposable incomes, and a dynamic domestic market.

Furthermore, the relaxation of the FDI policy now permits 100% FDI inflows under the automatic route for MSMEs, along with various tax exemptions and holidays available to the sector, making Indian MSMEs highly attractive to discerning investors.

Top Targeted Industries

In India, Small and Medium Enterprises (SMEs) are pivotal across a range of industries. Some of the key sectors where SMEs have a significant presence include:

1. Manufacturing
2. Textiles and Apparel
3. Food Processing
4. Information Technology (IT) and Software
5. Pharmaceuticals and Healthcare
6. Construction and Real Estate
7. Retail and E-commerce
8. Agriculture and Agro-based Industries
9. Education and Training
10. Tourism and Hospitality

Services we offer to a SME

ASC Group offer comprehensive end-to-end services for SMEs, covering everything from incorporation and business setup to managing compliance. Here are our key services for SMEs:

1. Accounting & Assurance Services
2. Goods and Services Tax Services
3. Corporate Tax advisory
4. Regulatory and Secretarial Compliance Services
5. Customs and Foreign Trade Policy
6. Risk Management advisory
7. Transaction Advisory Services