Significance of supply chain network in suataining growth of small and medium enterprises in India

India is seen as a future market for the global investors. It's vast cultural diversity and rapid growth of various sectors of Small and medium enterprises attracted the attention of central and local body of government to initiate the supporting policies for increasing the efficiency of small and medium enterprises.

It is known very well that SMEs are the engine of growth for any economic model. It's contribution in Indian GDP is recorded next to agriculture sectors. It's emerging trend of development generate the ample of opportunity for employment in India, where most of the people looking towards the small industries for earning their livelihood and compelled to live underemployment. In employment generation, it is at 2^nd position in Indian economy.

The main concern of this paper is how to increase the efficiency and productivity of Small and medium enterprises by using well-structured supply chain network. This paper is focused on the effect of supply chain network on SME's development. The conclusion of the study is based on data of growth of Indian MSME which is collected from GOVT of India annual report 2012–13. It explores the main features of SME which can be accelerated with the help of supply chain network. How this supply chain network increase the productivity of small and medium enterprises.

This paper considers the various issues and challenges of Small and medium enterprises in reference of supply chain network. It highlights the key constraints and advantages of SMEs. It considers the literature review on supply chain network practices applied on small and medium enterprises and explanation the main imminent.

In this paper we found the improving strategy of supply chain network push the growth of SME. The acceptance of rapid growing technology, decision making strategy and operation research tools can improve the performance of supply chain network. The changing business scenario becomes multitasking, it has to perform all activity to gain the competitive advantage and sustain in market place. This paper analyses that growth of SME is positively related to supply chain network practices.