New Delhi: The contribution of small and medium enterprises (SMEs) to India’s GDP is likely to increase up to 22% by 2012 from about 17% at present on account of an increase in production due to technological upgradation, says an industry chamber survey.

“SMEs’ contribution to Gross Domestic Product (GDP) is projected to go up by a minimum of 5% and touch 22% by 2012, since over 60% of them are aggressively upgrading themselves technologically,” Assocham survey said.

It said, the technology modernization would not only help in increasing production but also bring down the input costs.

The study said, liberalisation and deregulation in the industry would also contribute to the sector’s growth, adding that the sector, which has grown at the rate of 35% in the last two years is likely to register 40% growth in the next five years.

Further, the study said the sector contributes 40% to the country’s exports and with the help of modernised technology its share would increase to over 44%.

“With technology modernisation, the share of these units in the country’s exports would also surge to over 44% in the next five years from about 40% at present,” Assocham secretary general D S Rawat said.

Numbering about 32 lakh, there are various hurdles in the growth of these units as they face problems like non-availability of credit facilities and high interest rates, it added.