Sweden defines a small business is that it should have not have a turnover exceeding 5 million Euros. On the other hand India’s definition of an MSME is one based on fixed investment in equipment. Comparing a Swedish small business to an Indian one is like comparing meatballs with dosa.
With current measures failing to encourage Indian women to join the labor market as skilled workers, the most worrying sign is that the newly released National Policy for Skill Development doesn’t outline any new vision.
While there is no denying that rapid expansion of manufacturing remains the time-tested method for economic growth and job creation, there is evidence that manufacturing volume may not be the best proxy for long-run economic prosperity of a country.
All the world’s successful industrial policies – those that have delivered the best wages, working conditions and opportunities for economic mobility – have made diversification a central aim. Countries like Bangladesh must do the same.