Assessing the Impact of Key Drivers on SME Sustainability: A Study of Make in India Framework

Small and Medium Enterprises (SMEs) play an integral part in both the expansion of national economies and the broader business ecosystems. The dynamic nature of regulations, markets, and technologies across borders can significantly influence SMEs' opportunities and performance. In this context, developing nations must prioritize the formulation and implementation of policies that bolster the growth of SMEs. The "Make in India" initiative, launched by GOI in 2014, was a strategic policy aimed at transforming India into a global manufacturing hub by expediting investments and innovations. The present study aims to assess the effect of 3 key factors, namely, access to finance, technological adaptation, and government support on the sustainability of SMEs, within the framework of the Make in India initiative. Data for the study has been collected with the help of structured questionnaires from 357 SME managers in Delhi NCR region, and Partial Least Squares Structural Equation Modeling (PLS-SEM) method has been used for the analysis. The findings indicate that all the three factors significantly enhance SME sustainability, with government support playing a crucial mediating role between access to finance, adaptability of technology, and SME sustainability. The study has enriched the existing literature by providing a quantitative assessment of the Make in India initiative’s impact on SMEs, highlighting the importance of integrated strategies to foster SME growth in emerging economies.