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

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Employment in Smaller Indian Firms

How can Indian decision-makers take advantage of liberalisation to achieve economic growth and competitiveness, not as ends but as means to welfare and choice, social and sexual equality, and good work? Most new employment must be in small and medium enterprises, which have achieved some of these things elsewhere. Reviewed here are policies tried in India and elsewhere: protectionism plus privileges for small firms; 'real services' to promote flexible specialisation (Italy, Spain); long-term relationships between large firms and subcontractors (Japan); liberalisation to the limit (Britain, the US); education and training; promoting entrepreneurship, etc. Recent work on industrial districts suggests that Indian variants of flexible specialisation are emerging and can be promoted by suitable policies.

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