Review of Professional Management- A Journal of New Delhi Institute of Management

Tanu Kathuria ¹

Affiliations
1 JNU, IN

Abstract

No Abstract.

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Tanu Kathuria ¹

Affiliations
1 Economics New Delhi Institute of Management, IN

Abstract

As slow down in US economy is expected to turn into recession soon, impulse of export led growth through spill over of consumption splurge through housing sector boom as a result of sub prime lending, has been receding. Indian Economy once achieved 9% economic growth in the recent past, is now facing threat of contraction of rate of growth of output and employment as an immediate effect of US recession. Indian economy may attract high inflows of FDI causing high inflation, slow down of exports oriented sectors such as IT, IT-enabled services BPO, financial services, healthcare, textiles, jewellery, handicrafts and leather goods. In the long term Indian economy can experience stable growth provided India implements effective monetary policy to control and make use of large influx of FDI, and Indian exports diverted to European, African and other Asian markets. Since this recession is predicted to last for about 2-3 years, companies may prepare themselves to reap early benefits of recovery of the world economy. Meanwhile they could invest in up gradation of technology, market development and supply chain links in the period of recession, as the strategy of preparedness for ensuring recovery.

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Tanu Kathuria ¹

Affiliations
1 New Delhi Institute of Management, IN

Abstract

The small scale industries (SSIs) have a crucial role in a developing economy like India. They play a strategic role in the progress of the country. These industries by and large present a stage in economic transition from traditional segment to modern segment. The transitional nature of this process is reflected in the diversity of these industries. SSI contributes 6% of GDP, 35% of exports, 30 million employments (the second largest after agriculture), nearly 40 % of our industrial output and so on. This clearly conveys the significance of this sector in Indian Economy. Despite its high contribution to Indian Economy, this sector has not done well in the post liberalized and globalize period, partly because of lack of government attention and partly because of its own characteristics which have made it vulnerable to defeat at the hands of big units in the markets. Undoubtedly the small sector has enormous potential and is a crucial sector of Indian Economy. However for the sector to fully realize its potential, it is essential that it shall wake up to the realities of a liberalized India. It needs to be away of its state-designed protective rut. The Government shall realize the need for a shift in policy towards the sector, so that it can flourish.

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