Tracking the impact of economic reforms on the private enterprise sector in India

Abstract

The paper draws on the potency of user feedback mechanisms to evaluate the progress of industrial reforms in India. Based on a sample survey of 156 small, and medium enterprises spread across three industrial locations in India, the study presents a 'report card' on the efficacy of the regulatory and infrastructure agencies on which industrial enterprises in the country depend. In specific terms, the study addressed four primary themes: changes in the industrial environment subsequent to the reforms; major problems faced by entrepreneurs in dealing with the statutory and regulatory agencies; the status of infrastructure conditions in the three representative locations and major problem areas in this regard; and major inhibiting factors on future growth and productivity. This study has created an information base on which Indian states can compare their performance across various parameters and dimensions. The study also brings into sharp focus the variations in small industry performance and perceptions across cities. This reflects on how state governments pursue and implement the reforms initiated at the macro level.