We need to pull down artificial barriers of Large, Medium, Small, Tiny sectors in Indian industry. All industries, irrespective of these denominations, have to produce goods of the best quality and provide world class services to make the country a 5 trillion economy as early as possible.
These classifications worked when capital was scarce, technology and machinery were not available locally, import of capital goods was very difficult, raw materials needed imports, export was challenging, Industrial Licence was a necessity, many items were reserved for production in Small Scale as also for purchase from small scale by government departments, power supply was not easy and infrastructure for growth of industries was very weak.
None of these problems stand in the way of India’s progress any more.
We ought to treat industry as one sector and use the liberal regime of the SEZs (Special Economic Zones) for all industry.
Small/medium should not be mistaken for poor quality.
The consumer today is different and demands the best quality. If local products do not meet quality standards, consumer loyalty can’t be commanded by law or patriotism.
The Indian industry can’t serve the huge domestic demand in the near future. Exports are additional prospects.
With research and development investment it is possible to meet these requirements.
It will improve internal trade also. It will facilitate buying local to a large extent.
The licence raj is dead; quota system is dead; so is the permit regime.
Our banks can take care of industry needs and the costly state financial corporations, SIDBI type offices must be closed immediately. A transparent system operating presently is bound to change the industrial outlook of India in a few years if the suggested major reforms are carried out in one go soon.