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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... 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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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