Feb 10, 2017 - Companies head for hinterlands to offset weak post-DeMo sentiment gain from Budget's rural focus

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from TradeBriefs FMCG Weekly

Sree Vijaykumar

From the Editor's Desk
Some common threads run through a number of Indian SME units. Most of them are in niche areas, are run by owners who are increasingly qualified and well-educated and they are mostly unlisted companies. These are the unsung heroes of India's growth over the last two decades, boosting it in good times and providing the anchor in bad times. They constitute India's Mittelstand, the micro, small and medium enterprises sector, which contributes nearly 8% of the country's GDP, 45% of its manufacturing and 40% of its exports. More pertinently they also provide the largest share of employment after agriculture. The numbers though, could be better, much better. In Germany, the Mittelstand, which make up over 90% of all German firms, account for nearly 52% of the country's GDP. That's possible in India too provided we get off our obsession with large-cap companies as well as the new-age start-ups looking to be the next unicorn. More here

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