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More heat than light Align crops to agro climate endowments… China invests in India B H Kothari - a tribute Roaring Ro-Ro facility Remembering Indira Sivasailam... No Maha Koottani in TN... More Shakthi to Das’ elbow The ‘Jayanthi Tax.’ Tribute – UCAL Selvan… The Gulf aviation boom Editor's Says Poor representation for Kerala and TN in Cabinet TIAM turns a full cycle Fortune 500 review GNS - 100: our first subscriber Sri Lanka votes for change Welcome GST Delhi is distant Cutting the nose to spite the face Multi-faceted Venkat Adapt Vajpayee dinner diplomacy The Jan Dhan bonanza The rise and rise of KCP Telangana in top gear… The balancing act Fall in crude prices help in oil sector reform Contrarian cousins Lesson from Chandrababu Naidu The power-full Hindujas He continues the focus on social amelioration This scant respect for Law TGS- The king storyteller Modi and the lady TELANGANA at last…BUT ONGC at KG Basin Wise Presidents Air Asia India will set new benchmarks for budget travel Convulsions in The Hindu Demise of a media baron... Where is Rajaji? Strengthen the base... to the lack of interest on the part of these to focus on original research. This despite the much lower costs of such research in India. The industry which thrived on the protection of a closed economy and the advantage of a vast domestic market, has failed to organise its evolution on healthy lines The star of Spencers is no more Preserving for the future Maximising the micro pricing … F C Kohli - his concerns all embracing L&T: focus on infrastructure and more infrastructure… Music happens Of course, Gujarat is vibrant Making ‘my Amaravati’... Tihar, Puzhal not different from Parappana Agrahara WTO Meet: resolved to meet again When small is no larger beautiful.. Road development slows down EEC at the National Media Centre Modi storms Silicon Valley Auto components surge… Noble nonagenarians... He saved millions from starvation... For whom the MIDS bell tolls? Where a state respects its litterateurs… Building loyalty through the stomach Discoms deserve better… Revive development banks... When online building permits work…. CII projects higher growth… For whom the bell tolls? When TN politicians can emulate Kerala's Tatas moving out of urea production... CIPET hqrs to stay at Guindy – for the present? Don’t seem to feel the pulse… The Ports’ Pasha expands into Tamil Nadu Towards speedy justice Godspeed, Chief Minister JJ Delhi Chalo... No mega rail project for Tamil Nadu Sweeter prospects for sugar Marketing expert Balagopal is no more EVM is tamper-proof Funding the un-funded A glass full of corruption Whistle-Stop Tour of Raghuram Rajan R Sridhar steps down as CEO of Shriram Capital Waning interest in public discussions… TN – agglomerate land holdings without alienating ownership Valli, they are more marginalised Tatas moving out of urea production... Delhi is distant… The sea- saw battle continues... Five star activism stalls development activity IAS invades NDDB... Fortune for Indian Airlines PC’s preference for professionals When Ratan Tata visited SRM Shanti and Sadhana through Music Boy, can you beat these? Cleaning Ganga – relocate tanneries and install electric crematoria Quality education through the PPP mode A professional at the helm of IRDA... Engineering seats go abegging Muffled voices for merit… PPP mode for upgrading Corporation Hospitals How Air-India loses customs... Shale gas and its shallow future The nuclear option Wanted: a second airport for Chennai Breaththrough in malaria control Should we change the official year? TN-leverage strength of BHEL, NLC... West Bengal: mindless malignancy A think tank for Chennai Lalu’s envy, India’s pride Protest masters... Mersal magnified Polls and promises Tax agriculture Kinetic Karnataka Mu Sigma – is no more Excel Generators provide the vital back-up Adharma of opposition politics Readers' Mail Liberal imports idling indigenous capacities Poor quality of university VCs Chennai and Kolkata miss opportunity to grow as Delhi and Mumbai The why of tax incentives Rs.1600 crore paper board plant of TNPL IPL - no surprise this scam A friendly business group Come elections, come advertisements... Why this malaise in medical education? Another Indian music maestro at the UN Revving up the manufacturing sector Land reclamation from sea appears cheaper! Kudos to NDTV... Airlines in India: cost and space A Grand Finale for SN’s MS centenary at the US… SoA @ 80 Tough task taking states together Build close rapport with business leaders A C Muthiah – his munificent bequeaths to science A rich pool of talent not utilised…. TN accounts for the largest recruits by the IT sector The ‘Ayyo-yes’ is no more When the President was rendered homeless… CSR and CMI: promise of another Srinivasan Ramanujan... Increasing non co-operation of state leaders Shaming of Tamils by Tamil farmers at Delhi Cement prices continue to rise… Like Hinduism: many paths to reach God... Gas is the way forward More tributes to GR An inexplicable neglect Pharma – overdose of copying Computation of GDP – conundrums continue The brown list of Venkitaramanan Robber barons everywhere Rahman at CIC S Ramanathan – a versatile musician, musicologist Alexa – Talking Wikipedia Recognition to role of NBFCs.... Shipping woes of Chennai companies Russi Mody – a tribute A more liberated TN… Measuring roof tops in terms of KW/MW S V Raju – a ‘good’ true liberal Focus on quality of power - its only around 170-180V Not just in-laws (and outlaws); they’ve renowned academics at the helm! Why land prices zoom in TN? Vibrant Gujarat Small units prefers to remain small... Streamlining mandatory third party cover Welcome thrust on trade in Modi’s foreign visits... MHC should not return to its old indisciplined ways Nuclear power at the nucleus A welcome initiative by the judiciary Inflation: are we emulating Argentina and Brazil? Infrastructure funding – lessons learnt More Shakti to resource mobilisation... Welcome changes that testify to Jayalalithaa’s return to health GM Technology at last! A proud Madrasi All eyes on Sankara Nethralaya Limit foreign borrowings to hi-tech, export potential projects... An enemy’s enemy is a friend Which side are you, Montek? Scientists urged to take up farmer-oriented research Odisha: spectacular win by Naveen Patnaik Bihar elections - the Rajaji formula worked Banning booze... There was flood of milk. Reason: no milk commissioner! Colour-Chem’s colourful KRVS Permanent secretariat for TN GIM Delhi returns to BJP Parliament in paralysis... Diamond jubilee of Egmore Samskrt School The rise and fall of Annamalai University Sweet news for TN sugar mills Padma Bhushan for A Ramakrishna An informal presentation - analytical, forward locking... Online not in line with brick and mortar businesses... IPL type auction for VCs? Things happen by accident and not by design... …and of a popular trade leader Reliance’s TV – 18 ready to launch Tamil News Channel Gay abandon in pricing Tribute Make standards certification mandatory... Varuna (rain) in 2015; Vaayu (air) in 2016. Chennai devastated Eternal support for capitalisation of PS banks Tribute – Manikam Ramaswami Plummeting profits of PSBs Solar, solar everywhere … No engine for this car Bihar – Nitish Kumar adopts the Lalu model Dr C Rangarajan returns to Chennai Welcome focus on core competence New IT products of Ramco in the pipeline… Naidu’s return augurs well for Seemandhra The few handicaps... Editor's Notes A Grand Finale for SN’s MS centenary at the US… Tribute – M V Murugappan Naidu will soon build a new Hyderabad A yen for wastage… Silver Years of Madras Musings L&T- the specialty of special purpose vehicles Fuel for thought London, London Narayan Secularism and anti-Hinduism Return to king coal for urea... The Swadeshi Trump Put expensive assets created to use... Haul over the coal Solar thermal shines… Paytm karo... Quality silica from Neyveli CRS, a jewel among managers, is no more. Moily’s bold thrust When nations steal growth from one another… Kulandai was a giant Medical costs hit the roof... Intellectual of rare qualities Insurance companies bleeding, yet no decision on increasing FDI limit!
 
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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