small is good

Source: The Hitavada      Date: 04 Nov 2018 11:41:12

SMALL is always beautiful, no matter if some people may not agree. In modern thought, economies of scale are of utmost important as they add to numbers in big chunks. So, in the past few decades at least in India, the stress has been on large scale industries involving thousands of crores of rupees, gobble up hundreds of acres of land, consume thousands of tonnes of raw material, and require thousands of men and women to do the work -- in expectation of massive profits. But when Prime Minister Mr. Narendra Modi initiated a fresh impetus to micro, small and medium enterprises (MSME), he unleashed a great industrial revolution that can transform the Indian industry thoroughly and add tremendous socio-economic value to the national resources. Factually, there were times not long past that at least 65% of Indian industry was dominated by small scale sector, followed by medium scale sector, and tailed by the large scale industries. The Government appears to be hooked on to the idea as a game-changer. This is welcome.

Obviously, the Prime Minister does not wish to ignore the large scale sector as he knows its positive implications not just in economic terms but also in terms of international relations. Yet, even as the large sector will keep growing, the national stress on micro, small and medium scale sectors will actually enhance the overall productivity in a big measure.

In fact, this renewed stress will add a tremendously beneficial democratic dimension to Indian industry, taking the benefits to grass-root level. In order to achieve this, the Government has deployed a slew of measures that would facilitate launching of units in the MSME sector without administrative hindrances and delays. The Government has also promised to release an easy and quick credit, as well, to MSMEs in an attempt to make things easy for the small entrepreneurs. All these efforts seem to bring good news in a critical sector.

As India stands on the threshold of becoming the fifth largest global economy by the end of the next years and in expected to reach the top-3 segment in the coming years, as per the assertion of Union Finance Minister Mr. Arun Jaitley, contribution from the MSME sector is going to make a positive difference to speeding up of the rise in economic performance levels. When lakhs of entrepreneurs step into the active arena and launch their businesses, industry acquires a democratic air in which talent and enterprise flourish tremendously.

Of course, it is necessary to realise that the country has still not developed a healthy outlook on the rural industrial sector that holds tremendous possibilities and potentials of growth. The growth of MSME sector will certainly cover some parts of the rural sector all right, but that stress will not be good enough to push the next stage of revolution. Mahatma Gandhi had foreseen this and had made out a strong case of rural industrial sector.

If the Government considers that facet of economic thinking, then yet another forward step can be taken. Rural industry can have a bright future in India as it may come as a great support to efforts to spruce up agriculture. If rural industry too flourishes, it may stem the population outflow from villages to cities. And when the youth get jobs in their own social environment, a better sense of satisfaction will prevail among rural communities. As the Government thinks positively about MSMEs, it should also give a proper thought to the challenge of the rural industry.