India is expected to become the fourth largest economy by 2026 and the third largest by 2034. The Government of India aims to make the country a $5 trillion economy by 2025. To achieve this ambitious target, small and medium enterprises (SMEs), who are considered to be the backbone of the economy, will have to play a pivotal role. Driven by their entrepreneur spirit, SMEs have been making meaningful contribution to the country’s growth. 

 

However, industry is currently going through VUCA (Volatility, uncertainty, complexity and ambiguity) phase where market conditions are unstable. The first advance estimates released by the National Statistical Office (NSO) recently suggests a tepid recovery in second half of the fiscal with implied growth at 5.2 per cent against 4.8 per cent recorded in the first half for an overall 5 per cent rise in GDP in 2019-20.

 

Today, automobiles sector, which contribute immensely to the manufacturing industry, is suffering due to low sales and a number of regulatory issues. While this is putting pressure on SMEs, it is also a learning time for many who want to move ahead.

 

For example, every time Grind Master Group - a SME specialising in providing total solutions for surface finishing - was hit by a slowdown, the company explored innovative strategy to add new export market. Today, it supplies to Nissan, a Japanese automaker known for sourcing only from Japanese firms due to their stringent quality policies.

 

There are many such bright stars who have excelled in tough conditions and scaled new heights. To honour such achievers, IPF recently hosted the 4th IPF Industrial Excellence Awards in Mumbai, where 19 SMEs from 16 cities were rewarded for their achievements during the year. The awards recognise people, processes and products from the SME sector that drive the industry forward to achieve success in a competitive market. It is the only award that acknowledges true achievers (via unbiased selection process involving industry stalwarts as the Jury) in the SME sector and encourages them to raise their performance bar higher.

 

Every year IPF Awards are presented in two categories - “Fastest Growing Manufacturing Companies” (under Rs 5 billion turnover) and “Innovative Products”. This year, in addition to the regular two award categories, IPF presented awards in 2 new categories – “Promising Start-up of the Year” and “Entrepreneur of Year (Female and Male)” - to recognise and appreciate the contribution of start-ups and entrepreneurs in job creation and economic growth.

 

Employing over 100 million people, the SME sector’s contribution to GDP at present is 28.77 per cent, much less in comparison to the world average of 49 per cent (especially witnessed in countries like China, US, UK). With the Government of India aiming to increase contribution of SMEs to 50 per cent by 2025, IPF will continue to provide SMEs with business-critical information (through print as well as digital platform) that will equip them to face the dynamic market place. 

 

A big round of applause to all IPF Award winners!

 

Do write in with your suggestions at feedback@IPFonline.com