New Delhi : Acquiring units globally and expanding their presence, India's small and medium enterprises (SMEs) invested $23 billion abroad in January and February - more than what they invested in the whole of 2006, a senior official said here Wednesday.

"The SMEs are increasingly acquiring companies to gain the advantages of quick scale-up, technology acquisition and benefits of innovation," said Ajay Dua, secretary, Department of Industrial Policy and Promotion of the commerce and industry ministry.

Addressing a seminar organised by the Confederation of Indian Industry (CII), he said: "Moreover, a large number of SMEs overseas already have FDI approvals, thus making the process of acquisitions faster."

Said Hero Cycles managing director Sunil Kant Munjal: "M&As are a phenomenon that is here to stay and we can take advantage of it only if we are smart."

"M&As have acquired a strategic importance for India's manufacturing sector across size and industry," stated Sarita Nagpal, head of the manufacturing services division of the CII.

"However, what is important for the SMEs to grow is to build an internal uniqueness and competitiveness. This is what will enable them to become global leaders, we do not have to be No 1 in size, we have to be the only one having a certain uniqueness in our value proposition," added Nagpal.

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