The Future

The present era is the regime of the World Trade Organisation (WTO), in which the rules of trade change frequently in line with global expectations. As a founder member of the WTO, India has committed itself to the WTO's policy framework, and so small business too is moving away from the pre-liberalisation era of protection.

As the Indian economy integrates with the world economy, it is inevitable that small businesses must gear up their capabilities to explore, penetrate and develop new markets, and steadily reorient themselves to face stronger competition both at home and abroad. With their dynamism, flexibility and innovative entrepreneurial spirit, they have to adapt to the fast-changing needs of a market-driven economy.

The government, for its part, should reorient its assistance by acting as a facilitator and promoter rather than a regulator. New strategies are needed to:

• foster partnership between large and small industries;
• adopt a cluster approach;
• develop creative marketing;
• improve technological skills through upgradation; and
• build export competitiveness by identifying the core competencies of small businesses. …