IDEAS home Printed from https://ideas.repec.org/p/cde/cdewps/44.html
   My bibliography  Save this paper

Policy On Modem Small Scale Industries: A Case Of Government Failure

Author

Listed:
  • Suresh D. Tendulkar

    (Delhi School of Economics)

  • T. A. Bhavani

    (Delhi School of Economics)

Abstract

In this paper. We address ourselves to an evaluation of government policy designed for the modern small scale industrial segment of the small scale sector. We argue that the policy has been and continues to be supply-driven in being paternalistic and atomistic in the sense of individual unit-centred and is dominated by continuous protective and discretionary prol1jlOtional measures with adverse side-effects for the healthy growth of this segment. We underline the need to move away from perpetual protection and bureaucratic discretion-based promotion and argue for a radical shift in this policy towards a demand-driven and group Oriented and collective effort-based (rather ,than atomistic) approach with a plea for the abolition of indiscriminate reservation of production lines for exclusive production in the small scale sector and introducing and strictly enforcing the time bound character of promotional concessions to get out of the syndrome of remaining small and inefficient. The suggested shift in policy is necessary in order to flexibly adjust to changing circumstances so as to better serve the long-standing and as yet unattained objective of developing a vibrant and self-reliant modem small scale industry.

Suggested Citation

  • Suresh D. Tendulkar & T. A. Bhavani, 1997. "Policy On Modem Small Scale Industries: A Case Of Government Failure," Working papers 44, Centre for Development Economics, Delhi School of Economics.
    • Handle: RePEc:cde:cdewps:44
    as

    Download full text from publisher

    File URL: http://www.cdedse.org/pdf/work44.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Hicks, J. R., 1969. "A Theory of Economic History," OUP Catalogue, Oxford University Press, number 9780198811633.
    2. Prendergast, Renee, 1990. "Causes of multiproduct production: The case of the engineering industries in developing countries," World Development, Elsevier, vol. 18(3), pages 361-370, March.
    3. Kaushik Basu & Arghya Ghosh & Tridip Ray Author-Workplace-Delhi School of Economics, 1994. "The Babu And The Boxwallah Managerial Incentives And Government Intervention," Working papers 01, Centre for Development Economics, Delhi School of Economics.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Nezih Guner & Gustavo Ventura & Xu Yi, 2008. "Macroeconomic Implications of Size-Dependent Policies," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 11(4), pages 721-744, October.
    2. T. A. Bhavani & Suresh Tendulkar, 2001. "Determinants of firm-level export performance: a case study of Indian textile garments and apparel industry," The Journal of International Trade & Economic Development, Taylor & Francis Journals, vol. 10(1), pages 65-92.
    3. Richard Harrison & William Scheela & P. C. Lai & Sivapalan Vivekarajah, 2018. "Beyond institutional voids and the middle-income trap: The emerging business angel market in Malaysia," Asia Pacific Journal of Management, Springer, vol. 35(4), pages 965-991, December.
    4. T.A. Bhavani & Suresh D. Tendulkar, 2010. "Determinants of Firm-level Export Performance: A Case Study of Indian Textile Garments and Apparel Industry," Working Papers id:2964, eSocialSciences.
    5. Badola, Shivani & Mukherjee, Sacchidananda, 2020. "Factors Influencing Access to Formal Credit of Unincorporated Enterprises in India: Analysis of NSSO's Unit-level Data," Working Papers 20/326, National Institute of Public Finance and Policy.
    6. Bhavani, T.A. & Bhanumurthy, N.R., 2014. "Financial Access - Measurement and Determinants: A Case Study of Unorganised Manufacturing Enterprises in India," Indian Economic Review, Department of Economics, Delhi School of Economics, vol. 49(1), pages 85-108.
    7. Bagchi, Amaresh & Rao, R. Kavita & Sen, Bulbul, 2005. "Tax breaks for the small scale sector: An appraisal," Working Papers tru3, National Institute of Public Finance and Policy.
    8. T. A. Bhavani, 2002. "Impact of Technology on the Competitiveness of the Indian Small Manufacturing Sector: A Case Study of the Automotive Component Industry," WIDER Working Paper Series DP2002-76, World Institute for Development Economic Research (UNU-WIDER).
    9. T.A. Bhavani & Suresh D. Tendulkar, 1998. "Determinants Of Firm-Level Export Performance: A Case Study Indian Textile Garments And Apparel Industry," Working papers 58, Centre for Development Economics, Delhi School of Economics.
    10. Pradhan, Jaya Prakash & Husain, Tareef, 2021. "Drivers of SME Formation in Indian States: The Empirics," MPRA Paper 25061, University Library of Munich, Germany.
    11. Kausik Chaudhuri & Subash Sasidharan & Rajesh Seethamma Natarajan Raj, 2020. "Gender, small firm ownership, and credit access: some insights from India," Small Business Economics, Springer, vol. 54(4), pages 1165-1181, April.
    12. T.A Bhavani & Suresh D. Tendulkar, 2000. "Determinants of Firm-level Export Performance: A Case Study of Indian Textile Garments and Apparel Industry," Working papers 81, Centre for Development Economics, Delhi School of Economics.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. De Ãvila, Diego Romero, 2003. "Finance and growth in the EU: new evidence from the liberalisation and harmonisation of the banking industry," Working Paper Series 266, European Central Bank.
    2. Carl Gaigné & Jacques-François Thisse, 2013. "New Economic Geography and the City," Working Papers SMART 13-02, INRAE UMR SMART.
    3. Liu, Jiangtao & Zhang, Yi & Kuang, Jia, 2023. "Fintech development and green innovation: Evidence from China," Energy Policy, Elsevier, vol. 183(C).
    4. Lin, Jenny X. & Lincoln, William F., 2017. "Pirate's treasure," Journal of International Economics, Elsevier, vol. 109(C), pages 235-245.
    5. Nagmi Moftah Aimer, 2020. "Renewable energy consumption, financial development and economic growth: Evidence from panel data for the Middle East and North African countries," Economics Bulletin, AccessEcon, vol. 40(3), pages 2058-2072.
    6. Bernhard O. Ishioro, 2013. "Stock Market Development And Economic Growth: Evidence From Zimbabwe," Economic Thought and Practice, Department of Economics and Business, University of Dubrovnik, vol. 22(2), pages 343-360, december.
    7. Roy Stein, 2016. "Review of the Reference Rate in Israel: Telbor and Makam Markets," Bank of Israel Working Papers 2016.12, Bank of Israel.
    8. Keith Hart, 2005. "Formal Bureaucracy and the Emergent Forms of the Informal Economy," WIDER Working Paper Series RP2005-11, World Institute for Development Economic Research (UNU-WIDER).
    9. Mikael Priks, 2005. "Optimal Rent Extraction in Pre-Industrial England and France – Default Risk and Monitoring Costs," CESifo Working Paper Series 1464, CESifo.
    10. Gennady Bilych, 2011. "Profit, Inflation and Economic Growth," Macroeconomics bilych_gennady.85552-1, Socionet.
    11. C. A. E. Goodhart, 2009. "The Continuing Muddles of Monetary Theory: A Steadfast Refusal to Face Facts," Economica, London School of Economics and Political Science, vol. 76(s1), pages 821-830, October.
    12. William F. Lincoln & Andrew H. McCallum & Michael Siemer, 2017. "The Great Recession and a Missing Generation of Exporters," Finance and Economics Discussion Series 2017-108, Board of Governors of the Federal Reserve System (U.S.).
    13. Ang, James B., 2008. "What are the mechanisms linking financial development and economic growth in Malaysia," Economic Modelling, Elsevier, vol. 25(1), pages 38-53, January.
    14. Bengtsson, Ingemar, 2005. "Transaction Costs, Money and Units of Account," Working Papers 2005:29, Lund University, Department of Economics.
    15. Echavarría Juan José & María Angélica Arbeláez & María Fernanda Rosales, 2006. "La productividad y sus determinantes:el caso de la industria colombiana," Revista Desarrollo y Sociedad, Universidad de los Andes,Facultad de Economía, CEDE, June.
    16. Perera, N. & Paudel, R.C., 2009. "Financial Development and Economic Growth in Sri Lanka," Applied Econometrics and International Development, Euro-American Association of Economic Development, vol. 9(1).
    17. Edgardo Barandiarán, 1989. "Una Teoría sobre el Monopolio Estatal del Dinero," Latin American Journal of Economics-formerly Cuadernos de Economía, Instituto de Economía. Pontificia Universidad Católica de Chile., vol. 26(77), pages 11-24.
    18. Cimoli, Mario & Correa, Nelson & Katz, Jorge & Studart, Rogério, 2003. "Institutional requirements for market-led development in Latin America," Series Históricas 7792, Naciones Unidas Comisión Económica para América Latina y el Caribe (CEPAL).
    19. Pasquale Lucio Scandizzo, 2004. "Financing Technology: An Assessment of Theory and Practice," CEIS Research Paper 43, Tor Vergata University, CEIS.
    20. Ross Levine & Norman Loayza & Thorsten Beck, 2002. "Financial Intermediation and Growth: Causality and Causes," Central Banking, Analysis, and Economic Policies Book Series, in: Leonardo Hernández & Klaus Schmidt-Hebbel & Norman Loayza (Series Editor) & Klaus Schmidt-Hebbel (Se (ed.),Banking, Financial Integration, and International Crises, edition 1, volume 3, chapter 2, pages 031-084, Central Bank of Chile.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:cde:cdewps:44. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Sanjeev Sharma (email available below). General contact details of provider: https://edirc.repec.org/data/cdudein.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.