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Noble nonagenarians... Strengthen the base... IPL type auction for VCs? China invests in India The Jan Dhan bonanza Kinetic Karnataka F C Kohli - his concerns all embracing A proud Madrasi Quality education through the PPP mode Inflation: are we emulating Argentina and Brazil? West Bengal: mindless malignancy Wise Presidents Shaming of Tamils by Tamil farmers at Delhi L&T- the specialty of special purpose vehicles The few handicaps... Solar thermal shines… Editor's Notes Diamond jubilee of Egmore Samskrt School Making ‘my Amaravati’... Should we change the official year? The ‘Jayanthi Tax.’ Delhi is distant Five star activism stalls development activity The rise and rise of KCP Modi and the lady No engine for this car Adharma of opposition politics The why of tax incentives Maximising the micro pricing … Online not in line with brick and mortar businesses... Vibrant Gujarat Make standards certification mandatory... IAS invades NDDB... Varuna (rain) in 2015; Vaayu (air) in 2016. 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The Ports’ Pasha expands into Tamil Nadu Cement prices continue to rise… EEC at the National Media Centre Tribute Welcome GST Alexa – Talking Wikipedia A C Muthiah – his munificent bequeaths to science The Swadeshi Trump Tatas moving out of urea production... For whom the bell tolls? More tributes to GR Put expensive assets created to use... When TN politicians can emulate Kerala's For whom the MIDS bell tolls? Dr C Rangarajan returns to Chennai Convulsions in The Hindu CIPET hqrs to stay at Guindy – for the present? Robber barons everywhere R Sridhar steps down as CEO of Shriram Capital Demise of a media baron... Godspeed, Chief Minister JJ Liberal imports idling indigenous capacities Moily’s bold thrust Auto components surge… Insurance companies bleeding, yet no decision on increasing FDI limit! More Shakti to resource mobilisation... 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Small units prefers to remain small...
Ahluwalia pointed to the absence of medium-sized companies that employ 50-300 that would contribute to healthy growth of the manufacturing sector. Either business enterprises are too small or too large, he said. Jawahar Vadivelu, President-SICCI, attributed this to the difficulty of entrepreneurs to exit businesses: “not only it particularly difficult to start or exit a business, India is lagging even with respect to the ease of doing business. India currently ranks 137 of 185 countries in terms of ease of doing business. A direct consequence is that small and medium - sized firms tend to remain that way for much too long, leaving them vulnerable to external challenges.  Incentives are not there for firms to graduate to the organised sector where they have the capacity to grow. Instead they chose to remain inside the radar and chose to remain small.”
Till the 1990s there was a reservation of close to 800 items to be produced only by the small sector. There were exemption limits for excise duties and sales tax that again resulted in small businesses remaining small.  But the policy swung to the other extreme from the late 1990s; it eliminated at one stroke bulk of the special incentives and priority sector treatment given to the small sector. This resulted in the sector reporting pervasive sickness in the vital small and medium industry segment that remains the backbone of the manufacturing sector in several developed countries.

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