Indian SMEs are able to remain optimistic in the wake of last year’s downturn which has been quite encouraging. While IT, healthcare, pharmaceuticals, and construction remain the major drivers for the Indian SMEs, they are constantly keeping an eye on the volatile US and European markets. But the real question is, is it wise to invest in the US and European markets now? The inspiration to invest comes from President Obama’s categorical support for the SMEs working in his country. In his speech he lauded the SMEs for creating more jobs in the US rather than exporting them to other countries.

Obama was quoted saying “Historically, small businesses have created roughly two out of every three new jobs in our country. To replace the millions of jobs lost in the recession, we need to make sure small companies are able to open up, expand, and add names to their payrolls… small businesses will help lead this economic recovery. And that’s why we will continue to stand by them.”

As America starts to rise from the ashes of the recession, it is open to lending more opportunities to SMEs that promise to create new jobs. This is going to be a turning point for Indian SMEs who wish to set up offices in the US and for firms that want to go global. Business expansion is not just to be seen in the US. Now, the European Investment Bank (EIB) has also extended its support for their small and medium-sized enterprises as it commits to make €30 billion available for SMEs and to provide technical assistance to micro-financing institutions. The business wing of the European people’s party has also pledged to open new offices in other countries for expansion of European business. The current slowdown is not just a time of crisis, it may also a time of opportunity. Around 40% of Indian SMEs seem to be optimistic about this growth trajectory.

During the period between 2004 -09, Indian companies alone created 40,000 jobs in the US and states within the US had been competing to invite Indian SMEs by providing them incentives. Now, asset prices have gone down in the US, which makes it an enticing time to invest now but we are still a ways off from a full recovery. It may or may not be the right time for SMEs to invest in the US and European markets- that is something that still needs to be decided.