New Delhi, Dec 11 (UNI) Commerce Minister Kamal Nath today said the promotion of Small and Medium Enterprises (SMEs) are crucial to India's growth and for addressing issues of poverty and unemployment.
While addressing the TIE Entrepreneurial Summit 2007, here today, Mr Nath stressed that the entrepreneurship is critical for increasing competitiveness as new services, products, processes and innovations increase efficiency, thereby improving the competitive strength of the economy as a whole.
Elaborating on the role played by the entrepreneurs, Mr Nath observed that Industry has been one of the major drivers of growth of the Indian economy.
The last four years have witnessed impressive rates of industrial growth averaging around 10 per cent.
In 2006-07, the industrial growth was at 11.5 per cent, while the rate of growth of manufacturing was at 12.5 per cent.
''This has resulted in FDI inflows to India growing at a fast rate. Compared to 5.5 billion dollars in 2005-06, FDI inflows reached 15.5 billion dollars during 2006-07 which corresponds to an increase of 185 per cent,'' Mr Nath added.
Savings, which are about 30 per cent of GDP are estimated to grow to 35 per cent. Similarly, gross capital formation is likely to touch 37.5 per cent. Mr Nath said it is expected that the private sector will be predominant in capital formation.