Who can make it in India?

Abstract

The financial managers in the Modi government appear to be convinced of the need to undertake large-scale industrialisation. THE financial managers in the Modi government appear to be convinced of the need to undertake large-scale industrialisation. The ‘sarkar’ is spending quite a bit of its political capital towards making it easy for the big business to become a partner in industrialisation. Consequently, it has not paid sufficient attention to the enormous potential of micro, small and medium enterprises to generate economic activity and jobs. The current policy needs to be tweaked accordingly.

The Government of India has been actively pursuing the objective of increasing output and employment in the country, especially at a time when the rate of youth unemployment is unusually high at nearly 25 per cent. Consequently, the measures that the government has been announcing include ‘Make in India’ across the country and the need for a second Green Revolution to be implemented in the Northeast. The government has been relentlessly following the objective of the above two schemes by ensuring financial inclusion through Jan Dhan Yojana and Micro Units Development Refinance Agency (MUDRA) Bank. In view of the gloomy economic situation, with expected El Nino as well as the rising non-performing assets of commercial banks, it is necessary that India is able to explore new growth opportunities within the country. In this context, micro, small and medium enterprises (MSMEs) can play an important role, as these have the potential to absorb a large number of people in employment — in 2013-14, 4.9 crore such units provided employment to nearly 12 crore people. The MSME sector is diverse in terms of its size, level of technology employed, and range of product and services produced. The products from the sector vary in range, from simple village-level output to complex components like micro-processors and electro-medical devices. Read more at: https://www.tribuneindia.com/news/archive/comment/who-can-make-it-in-india-106685