India's small and medium-sized enterprises (SMEs) face challenges as the country's largest conglomerates gain market share and pricing power, potentially making it harder for smaller businesses to compete. While India's GDP is forecasted to grow at 6.1%, a K-shaped recovery has emerged, with the wealthy benefiting while those with fewer resources struggle.
The top 20 companies now account for 80% of the country's profits, double the percentage from a decade ago. In contrast, many SMEs report declining profitability. Economists warn that the faster expansion of large companies is creating an imbalanced growth landscape. Government initiatives aim to support SMEs, but challenges remain, including pricing pressure, competition, and bureaucracy.