Small and Medium Enterprises in the Era of Globalisation


  • D. Nagayya Consultant on Small and Medium Enterprises at Guntur; and former Director (Industrial Development), National Institute for Micro, Small and Medium Enterprises (ni-msme), Hyderabad – 500 045
  • P. Tirumala Rao Krishna University P.G. Centre, Dr. M.R. Appa Row Campus, Nuzvid –521 201, Krishna District (Andhra Pradesh)


Micro, Small and Medium Enterprise (MSME) sector has been undergoing a metamorphosis in the era of globalisation for over a decade and a half. Many developments of relevance to SMEs (Small and Medium Enterprises) have taken place within the country and internationally. Globalisation resulting in fierce competition in various product lines has forced the SME sector to adopt strategies in tune with the global trends. A number of programmes of cluster-specific and firm-specific approaches are being pursued by all India organisations with a wide network of institutions associated with various functions supporting the SME sector at different levels. The present paper discusses a few key approaches, such as the MSMED Act, 2006, Policy of de-reservation, Greater equity participation, Cluster Development Approach (CDA), and National Manufacturing Competitiveness Programme (NMCP) which help the SME sector to reorient itself to face the challenges posed by increased competition as a result of globalisation. In an increasingly globalised competitive scenario, SMEs have to upgrade their capabilities by innovation, and adoption of advanced technologies and modern management practices.


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How to Cite

Nagayya, D., & Tirumala Rao, P. (2016). Small and Medium Enterprises in the Era of Globalisation. Journal of Rural Development, 32(1), 1–17. Retrieved from