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

Reported On :
Sector :
IE, the business magazine from south was launched in 1968 and pioneered business journalism in south. Through the 45 years IE has been focusing on well-presented and well-researched articles. When giants in the industry stumbled to keep pace with the digital revolution, IE stayed affixed embracing technology.
Read more
Economist Communications Ltd is committed to ensuring that your privacy is protected.
Read more
You agree that your use of this Website and the purchase of the magazine will be governed by these terms and conditions.
Read more
S-15, Industrial Estate,
Chennai - 600 032.
PHONE: +91 44 22501236