CASE SUMMARY

The Micro, Small and Medium enterprises have lent a major hand in catapulting India to the
position of India’s fastest growing world economies. 40% of the country’s manufacturing output
and almost 38% of its exports come from this sector.MSME have generate huge employment – the present figure is
around 42 billion, and can promote balanced regional development along with a more equitable
distribution of wealth.
There are many problems faced by MSMEs. They generally borrow from NBFCs, who
themselves have their own share of liquidity problems so they can barely sustain the existing level
of lending let alone increase it. Micro export-oriented units, especially are finding it
extremely difficult.

Impact of Economic Crisis on SME Sector

The recession in the US market and the global meltdown, termed as Global recession have
engulfed complete world economy with a varying degree of recessional impact. This recession
resulted in job losses, dip in sales, profits etc. In India every sector had an impact of recession.

FUTURE OF SMEs:

Revision of provisions by RBI They are slowly recovering from the crisis situation. Economic
Crisis has actually created an opportunity for employees who were fired from their organizations
to come up with their own ventures. SMEs will get a
chance to list their stocks in NSE or BSE and raise money from the public.
SME's from the usual eligibility norms applicable for initial public offerings (IPOs) and follow-on
public offerings.

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