ISSN (Print) - 0012-9976 | ISSN (Online) - 2349-8846

Articles by M H Bala SubrahmanyaSubscribe to M H Bala Subrahmanya

The National e-Commerce Policy, 2019

The draft national e-commerce policy 2019 states that the e-commerce platforms use network effects and mining of unstructured data to create entry barriers. We argue that network effects alone do not create sustainable competitive advantage for the platforms. The added effect of the high customer switching costs creates a dominant position for the big firms. It is to be noted that their business models are not built around data. The provision of consumer data or the regulation of foreign participation in this space, does not translate into better business opportunities for micro, small and medium enterprises due to their small-scale operations. Rather, the big domestic retail players might take over and limit the opportunities. 

Global Value Chains of MNCs and Indian SMEs

The rapidly expanding global value chains of multinational corporations are increasingly dominating international trade, which emerging economies like India can hardly afford to ignore. The limited presence of Indian small and medium enterprises in the GVCs of MNCs can be traced back to a negligible share of internationalised SMEs, which is primarily due to a weak innovation base, owing to weak networks of SMEs, particularly weak inter-firm linkages. These issues can be overcome by building and strengthening regional innovation systems and by establishing a multipurpose science and technology commission in the clusters of SMEs.


Growth and Structural Change in the Indian Economy

Historically, an economy would undergo structural changes when growing: agriculture’s contribution to the gross domestic product would decline steadily, industry’s contribution would rise steadily and compensate, and later, the services sector would follow. Contrary to this historical pattern, the services sector has bypassed the industrial sector in India, and it dominates the economy. An empirical analysis of the nature and causes of structural change in the Indian economy shows that the industry and the economy are driven by the services sector, and the sector’s growth and dominance is influenced by external factors, such as foreign direct investment.

Innovation and India's Growth

Innovation in India: Combining Economic Growth with Inclusive Development edited by Shyama V Ramani, New Delhi: Cambridge University Press, 2014; pp 404, Rs 795.

New Generation Start-ups in India

An increasing number of new generation start-ups in the technology/knowledge-intensive industries have created something of an "euphoria" in major cities of India. This paper discusses the salient features of the start-up ecosystem that has emerged in our country, its adequacy for start-up promotion, and the measures needed to strengthen this. As a prelude, the paper traces the origin and phases of start-up growth in India, and its employment contribution, relative to the organised sector. The paper concludes with an emphasis on the need for a steady increase in new generation start-ups as a means of productive employment generation, economic transformation and growth.

Why Does India's Economic Growth Process Falter?

It is imperative that the Indian economy strives to achieve a structural transformation of industry by building up the capital goods industry base and acquiring the technological competence to boost the share of high-tech goods in merchandise exports. In the long run, this is the only sustainable way of achieving a trade surplus. This alone will lend strength and stability to the rupee.

The Dragon Rules the World:Can the Tiger Pose a Challenge?

The Chinese small and medium enterprises have been able to capitalise on the growing demand for low quality and low priced goods in major markets. Multinational supermarket chains have set up product procurement branch offices in China, and shops catering to low and middle income consumers in developed countries are flooded with Chinese products. This competitiveness has been achieved through a mix of external and internal factors. Given the relatively small size of the Indian SME sector, which is largely confined to local and regional markets, India is unlikely to be able to challenge the Chinese export engine.  

Auto SMEs in Bangalore: Does Innovation Promote Employment and Labour Productivity?

The paper examines the influence of technological innovations on employment and labour productivity growth of a sample of 72 small and medium enterprises in the auto component sector of Bangalore. Innovative SMEs, engaged in both product and process innovations, could achieve a considerable increase in their sales and employment during 2001-02 to 2005-06. But in the midst of high turnover rates of employees, comprising largely skilled and unskilled workers with a marginal presence of technical employees, the incremental nature of innovations and a significant employment growth, innovation did not have a positive impact on labour productivity growth. Upgrading the quality of innovations, adopting strategies to retain the trained technical/skilled labour and undergoing training in "innovation management" to optimally employ factor inputs are suggested to enable SMEs reap "productive benefits" from their innovations.

Small Business Experiences

Small and Medium Scale Industry in India and the Model of Japan edited by Konosuke Odaka and Yukihiko Kiyokawa;

Technology Transfer and Developing Countries

and Developing Countries Technology Transfer: Strategic Management in Developing Countries by Goel Cohen; Sage Publications, New Delhi, 2004; pp 336, hardbound Rs 550.

Technological Innovations in Small Enterprises

The level of development of a region in terms of educational and technological infrastructure influences the internal and external factors contributing to technological innovations of enterprises. This paper reports a comparative study probing the nature and dimensions of technological innovations carried out by small engineering enterprises in north-east England and in the Bangalore urban district. The pattern of technological innovations in the two regions, the similarities and dissimilarities are analysed.

Product Reservation Policy for Small Industry

S Shukla TWO basic issues arising from Andre Beteille's very full obituary tribute to S C Dube (EPW, March 30) should not be allowed to be obscured.


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