Chapter

Small-Scale Industry Policy in India

Edited by Rakesh Mohan

in Economic Policy Reforms and the Indian Economy

Published by University of Chicago Press

Published in print July 2002 | ISBN: 9780226454528
Published online February 2013 | e-ISBN: 9780226454542 | DOI: http://dx.doi.org/10.7208/chicago/9780226454542.003.0007
Small-Scale Industry Policy in India

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This chapter investigates that the educational policies were planned to promote new entrants and to protect small-scale firms from what was believed would be unfair competition from established firms. The Indian attempt at correcting for capital market distortions through administrative means has met with perverse results, and a whole new approach is called for. Some of the policies reviewed may have been useful in the earlier stage of Indian industrialization and in the context of a highly controlled and closed economy. The unchanging share of manufacturing employment that has been found over three decades in India is atypical, demanding explanation and meriting concern. The Indian manufacturing sector had been confined by the various antigrowth policies encouraging the small-scale sector, particularly that of product reservation. There has to be a new approach considering the problems underlying the difficulties faced by small-scale industry enterprises in attaining adequate access to credit.

Keywords: small-scale industry; India; educational policies; small-scale firms; capital market; Indian industrialization; Indian manufacturing; product reservation

Chapter.  33310 words. 

Subjects: International Economics

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