India's Scene of Micro, Small and Medium Enterprises Today

Book ID: ISED-306

Book Type: Soft Copy

Description

The current economic slowdown in India need to be understood in relation to a sequence of issues during the previous years. Undoubtedly, there is need for a complex exercise in maintaining business confidence. The logic and historical experience of economic slowdown visualizes a gap in the confidence levels between the MSMEs and the corporate sector. This gap, conceptually, cancels out during an adjustment period, thereby saving the economy from a major crisis. While this logic has not worked very well recently due to some specific factors, there is need for a correction mechanism. The role of private sector in the Indian economy is, undoubtedly, crucial. The Union Budget 2019 has come up with several proposals for providing relief to this sector. But this is not enough to ease the so- called ‘millennium dualism’. There is relevance and need for a discretionary approach to public policy. Here lies the case for a ‘Tortoise and Hare ‘strategy, by which the new economy-old economy divide can be minimised from the angle of sustainable development. Keywords: Growth rates, exports, business confidence gap, credit delivery, knowledge base, adjustment period.