SMEs to contribute 22% to GDP by 2020: Govt

Contribution of small and medium enterprises to the country's gross domestic product (GDP) is expected to increase to 22% by 2020, from the present 17%, a top official of Department of Science and Technology said today.

Indian companies, products and services were being seen as budding stars and paving way for 'brand India', especially in West Asia and Africa, where Indian firms were given preference over others, K Jayakumar, Joint Secretary, Department of Scientific and Industrial Research, DST, said.

He was speaking at the TechEx 2011, a technical and engineering exhibition, organised by the alumni of PSG Institute of Technology.

L Ganesh, Chairman, RANE group of Companies, said the 8-9% growth of Indian economy could be sustained through manufacturing sector and not IT sector alone.

Though IT sector was playing a major role in the GDP growth, the manufacturing sector with its present contribution of 15% should increase it to 25 to 30% in the near future, Ganesh said.

The alumni of the college from 1955 to 2011 are participating in the three-day exhibition, where 347 stalls showcasing different types of products are displayed.