All the same, in the recent years, some groups of SMEs in India have been trying to incorporate green supply chain management in their operations. They have been taking interest in this approach because their customers, most of whom are large global and multinational companies, insist on their supplier companies to have sustainable practices. They insist that they would only do business with suppliers, who are the SMEs in India, have taken measures to green their supply chain. Thus SME suppliers, in order to be in business and remain competitive have been taking care to green the Inbound logistics which include green sourcing and green inbound process, green production as well as green outbound logistics. While this initiative certainly ensures SMEs to remain competitive and achieve economic performance, it needs to be assessed whether the environmental performance is also achieved.The current paper explores the extent of implementation of green supply chain initiative for a group of SMEs in the Chennai area of India and tries to determine if economic
Green Supply Chain Management: A Study Based on SMEs in India 17performance as well as environmental performance are getting achieved. This exploration is carried out with the help of an empirical survey conducted in this area where many SMEs exist supplying auto parts to global multinational companies.SMEs in IndiaIn every country SMEs, both in manufacturing and service sector, carry a major portion of the operations. In India over 50% to 66% of all businesses constitute small and medium enterprises, SMEs. In many regions, this proportion is even greater. SMEs are capable of creating jobs and wealth with the least amount of capital. They are also adaptable and help in development in dispersed locations. These enterprises are often the sole job-provider and form the backbone of industrial activity in not so developed regions. This makes SMEs attractive to policy makers However, they remain a heterogeneous group with different organizational forms, ranging from proprietorship to corporate (Venkatesh & Muthiah, 2012). All the same these enterprises are typically low in capital and thereby lack money and technological expertise to address environmental pollution. SMEs play a vital role in the growth of the Indian economy by contributing 45% of industrial output and 40% of exports, employing 60 million people, creating 1.3 million jobs every year, and producing over 8000 quality products for the Indian and international markets. The contribution of SMEs towards GDP in 2016 was about 20 %; this is expected to increase much higher in next few years. There are approximately 30 million micro, small, and medium enterprises (MSME) units in India, and 12 million people are expected to join the workforce in the next few years (Rawat et al., 2014).