Small-scale industries in India in the globalisation era: performance and prospects

Abstract

Small-scale industries occupy a place of strategic importance in Indian economy in view of its considerable contribution to employment, production and exports. However, since 1991 small-scale industries in India find themselves in an intensely competitive environment due to globalisation, domestic economic liberalisation and dilution of sector specific protective measures. This paper probes the implications of globalisation and domestic economic liberalisation for small-scale industries and analyses its growth performance in terms of units, employment, output and exports. The paper concludes with policy recommendations to ensure the sustenance and competitive growth of small-scale industries in India.