Responsiveness of Small and Tiny Enterprises to Policy Reforms in India

Abstract

Government of India for the first time, announced a separate policy for small and tiny industry sector (NSIP) on large scale sector has generated lot of interest among academicians, entrepreneurs, planners, and policy makers. However, the implications of this policy thrust for small-scale sector have not been adequately debated despite its vital role in the economic growth of the country. One school of thought perceives a positive impact of NEP in general and NSIP in particular on small-scale sector while another school of thought perceives a negative impact. In either case very little has been discussed beyond an intellectual guess work. Policy reforms across the world economies have succeeded only when the directly affected agents have perceived them as contributory to the development. Academic work in India, so far, has not taken this reality into consideration while analysing the impact of NEP. Realising this limitation the present research made an attempt to understand the perceptions of the entrepreneurs on various policy measures launched since 1991.