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The small and medium enterprises (SME) sector is expected to be the driving force for the Indian economy in the years ahead. Discuss.

Topic: Indian Economy and issues relating to planning, mobilization, of resources, growth, development and employment.

5. The small and medium enterprises (SME) sector is expected to be the driving force for the Indian economy in the years ahead. Discuss. (250 words)

Difficulty level: Easy

Reference: Live Mint

Why the question:

The small and medium enterprises (SME) sector is expected is expected to contribute $2 trillion and create 50 million additional jobs by 2024, as India aims to become a $5 trillion economy.

Key Demand of the question:

To write about the importance of SME sector to the Indian economy and ways to harness it.

Directive word: 

Discuss – This is an all-encompassing directive – you must debate on paper by going through the details of the issues concerned by examining each one of them. You must give reasons for both for and against arguments.

Structure of the answer:

Introduction: 

Begin by giving factual status of proportion of SME vis-à-vis the population dependent on it also adding the dimension of the demographic demand of India.

Body:

First, elaborate upon the importance of SMEs in socio-economic development of the country. GDP growth, Job creation, exports and entrepreneurship etc.

Next, Mention about the challenges of the SMEs such as skilling, linkage with the e commerce industries, upgrading of marketing skills and meeting new market needs. Mention the steps that are needed to address the above issues.

Conclusion:

Conclude by writing a way forward.