It also cannot fully reap the benefit of information technology as it has high sunk cost and a high rate of obsolescence. Though having strong links with large firms, institutional mechanisms for transfer of technology to SMEs are lacking.
If SMEs are to effectively integrate with supply chains, we need to ensure that links of finance and technology with large firms work at all times. Third, as I mentioned a little earlier, India’s next growth push has to come from manufacturing sector. We had a missed century of opportunities.