Drawing Lessons From India, Establishing And Profecting SMEs Policy-related Financial Support System Of Our Country

Since reform and opening up, SMEs (Small and Medium Enterprises)of our country play a very important role in economic and social development. They have made a positive contribution in creating jobs, promote exports and stimulating economic growth, increasing state revenues, promotion of industrial restructuring and social stability. However, when SMEs play an active contribution to the national economy, they face severe financial difficulty, and this has seriously hindered the development of SMEs. From a global point of view, a sound SMEs policy-related finance support system is important method to solve the financing difficulty of SMEs, and India has accumulated some experience at the building of the SME policy-related finance system. India and China both are the largest developing country, having the similar national conditions, thus Indian experience has more reference meaning than developed countries'.In this paper, at first, it describes policy-related finance support system and its functions, analyze the status and problems of our country's SMEs policy-related finance support system. subsequently, the paper analyzes the status and characteristics of Indian SMEs policy-related finance support system .After this, drawing lessons from India, the paper proposes the measures of establishing and improving our country's SME policy-related finance support system. That is, setting up SMEs policy-related bank, perfecting policy-related credit guarantee institutions and government investment funds. It also point out several issues that we need to pay attention to when we are establishing and perfecting the SME policy-related finance support system.