SMBs contribute over 60% to the Indian GDP: survey

Bangalore, July 16 (UNI) Small and Medium Businesses (SMBs) in the country have been contributing more than 60 per cent to the GDP while its spending on IT was only 30 per cent of the country's total IT spending, according to a survey conducted by Zinnov Management Consulting, one of the leading Management consulting firms in India.

Talking to reporters here today, Zinnov Chief Executive Officer Pari Natarajan said the study on 'IT Opportunity in Indian SMBs Sector' had revealed that there were about 35 million SMB units in the country with retail sector contributing 52 per cent of it.

SMBs' contribution to GDP was more than 600 billion US Dollars and had been growing at a steady rate of CAGR 12 per cent over the last seven years, he said.

Stating that there was a huge potential for an increase in IT spending in the SMB sector, he said due to lack of awareness about the benefits of the IT and lack of education among the IT vendors, especially in Tier II and Tier III cities, the spending remained low.

To a question, he said the government was trying to encourage the SMBs to adopt technologies for making their process efficient to remain globally competitive.

He said the number of SMBs were expected to touch 48 million by 2015 and there would be a set of third party vendors who would use the IT infrastructure to provide services to the SMBs.

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