question_answer

As we all know/ Govt of India is giving much emphasis these days on the development of Small and Medium Enterprises (SMEs). Which of the following statements reflects the importance of the SME sector in the India economy?  [RBI 2009]

(1) The Govt is following a policy of keeping some items reserved for SMEs only. Hence a good number of items for local consumption come from these alone.

(2) The main advantages of SMEs are reduction of regional imbalances, low investment, greater operational flexibility and low production cost. This helps in good control over prices of such items in local markets.

(3) A very large number of people are employed in this sector and this sector is the second largest employer in India, after agriculture.

A)  Only (1)                       

B)  Only (2)

C)  Only (3)                       

D)  All (1), (2) & (3)

E)  None of these