Indian market is growing rapidly in various sectors - Manufacturing, Food Processing, Service, Retail, IT etc. and flow of Foreign Direct Investment (FDI) has considerably increased during the last decade.

In these developments Small and Medium Enterprises play an important role as the driving force for the growth of national economy through employment generation, investments and exports. Indian SME sector contribute substantially to industrial output, exports and employment.

Developing as well as the developed countries are making more and more efforts for promoting SME sector by trying to resolve the issues and problems faced by them in the era of globalisation. While globalisation offers plenty of opportunities for SMEs in global markets, it also poses a number of challenges. Although SMEs are flexible and can quickly adapt to changes, they can be successful in the global trade only if they are competitive in terms of price, quality of goods and able to meet the delivery schedules.

During the present global financial crisis and recessionary trend, many companies are affected in different degrees. But, with their inherent strength and resilience SMEs can wether adverse situations, as they are not dependent on public money. Many overseas companies are turning to Indian SME to out source their manufacturing activities. In service sector many are setting up BPO and KPO in India which are a real boon for the Indian SME sector.

Since SME Sector is the driving force behind a large number of innovations and growth of the national economy, they are required to be put on an equal footing with the corporate by nurturing them and providing them support in all strategic areas including investment, timely finance, latest technology and innovative ideas for industrial development.