Responsiveness of Small and Tiny Enterprises to Policy Reforms in India

Abstract

The policy environment is a decisive exogenous factor in industrial development. The policy reforms launched in India since 1991 intend to integrate the economy into global transactions. A large chunk of India’s industrial economy consists of small-scale enterprises, promoted and protected by the state during the last two decades. The success of the reforms would largely depend on how this large segment perceives them. The authors of this paper attempt to obtain and analyse the perceptions of small-scale entrepreneurs on the policy shifts in order to derive possible policy directions.