Get the Tata Capital App to apply for Loans & manage your account. Download Now

Blogs SUPPORT
Loans For You
Loans for Business
Investment
Insurance
Apply

Quick Links for loans

Quick Links for Insurance

Investment

Offers Quick Pay
Back

Equipment Finance

Avail Digital Equipment Loans
up to Rs. 1 Crore

  • Attractive ROIs
  • Customizable Loan tenure
Know More
Back

Equipment Leasing

Avail Leasing solutions
for all asset classes

  • Up to 100% financing
  • No additional collateral required
Know More
Back

New Commercial Vehicle Financing

  • First time user
  • Retail and strategic Clients
Know More
Back

Used Commercial Vehicle finance

  • Repurchase
  • Refinance
  • Top up
  • Balance Transfer
Know More
Menu  
 
Apply Now

Tata Capital > Blog > Loan for Business > What Would Be the Role of SMEs in Changing India’s Economic Development In 2021

Loan for Business

What Would Be the Role of SMEs in Changing India’s Economic Development In 2021

What Would Be the Role of SMEs in Changing India’s Economic Development In 2021

The backbone of the Indian economy, the SME sector makes an immense contribution to country’s GDP and employment landscape. Especially in the past year of economic upheaval, it has shown agility and sustainability through innovation and adaptability. As per a recent survey by Economic Times, 43% of all MSMEs in India are selling their products through online retail stores.

While SMEs undoubtedly suffered a blow in 2020 in the wake of the pandemic, they are fast bouncing back, thanks to the easy availability of SME loans and a recovering economy.  

In 2021, what will be this sector’s contribution to India’s economic development? Let’s take a look.

Bringing Equitable Development

The MSME sector has succeeded in reducing the regional imbalances through a more equitable distribution of the nation’s resources, and will continue to do so in 2021. Apart from directly providing for rural areas, this sector has been largely responsible for being ancillary units to the large industries. This is because large industries mostly cater to the developed parts of the country. Through MSMEs, they are able to reach a wider and remote area, which in turn leads to growth and development in these regions.   

Increasing Employment Opportunities

The MSME sector is said to be the largest creator of employment opportunities in our country, at a relatively low cost of capital. In comparison to the larger industries, the sector is said to provide 4 times more employment. Employing lakhs of people from even the most backward areas, no wonder that MSMEs are called the ‘Engine of Growth.’ Furthermore, SMEs will also continue to invest in upgrading the skills and training of employees.

Additional Read: Guide for First-Time SME Loan Applicants

Boosting the Manufacturing Sector

There is a wide classification of industries under the MSME sector, the majority of which fall under the purview of manufacturing. As India treads the path towards self-reliance, MSMEs in manufacturing are investing in substantial modernisation, technology up-gradation, and infrastructure development, a trend that will continue in 2021. All of these feats require significant capital. Thanks to the easy availability of MSME loanstoday, small and medium businesses can continue strengthening this industry in the years to come.

Improving Export Competitiveness

MSMEs have the capability to improve trade significantly by exporting a wide range of products internationally. This can boost their profits, which is pivotal in reducing their dependence on direct subsidies and protection from the government. Some of the high performing items exported by the MSMEs are ready-made garments, leather goods, engineering items, and processed goods. In 2021, the percentage contribution of its exports is expected to go up due to reduced regulations.

Additional Read: Benefits of applying for an SME loan by Tata Capital

Looking to scale up your small venture? Tata Capital offers business loans with competitive business loan interest rates to help you grow your company, no matter its size and scale.

We understand your aspirations and are here to help you achieve your dreams through our customised funding solutions. Visit our website today to check your business loan eligibility, and get in touch with us for easy financing!

Apply Now

Give Your Business the Right Boost: Apply for a Business Loan Today

Apply now
Popular Searches
business idea udyogini scheme hsn code full form low investment business ideas top 10 most successful businesses to start transport business import export business in india mineral water plant cost collateral free loans
Disclaimer

Most Viewed Blogs

Trending Blogs

Calculator

Personal Loan EMI Calculator

Personal Loan EMI Calculator
Home Loan EMI Calculator

Home Loan EMI Calculator
Business Loan EMI Calculator

Business Loan EMI Calculator
Used Car Loan EMI Calculator

Used Car Loan EMI Calculator
Two Wheeler Loan EMI Calculator

Two Wheeler Loan EMI Calculator
Loan Against Securities Calculator

Loan Against Securities Calculator
Loan Against Property Calculator

Loan Against Property Calculator
More Tools
Our Subsidiaries
Our Other Websites

Useful Links and Resources

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Policies, Codes & Other Documents

Most Important Terms & Conditions - Home Loans

Download in your preferred language

Download

Tata Capital Solutions & Services

Uh oh, something went wrong

Please try again later.