Essay On Problems Faced By Small Scale Industries In Maharashtra

Maharashtra is the perfect example of how India's economic growth has been uneven and concentrated in just a few geographical pockets.

On one hand, you have Mumbai, dubbed the financial capital of the country and has promoted surrounding ring of development just outside the city limits, and on the other, you have a region like Vidarbha, notorious for poor growth and suicides by farmers.

Indeed, Maharashtra has the highest share of foreign direct investments over 2000-2011 and farmer suicides in the country.

At a Ficci conference in Mumbai on Wednesday, the industry body and Yes Bank released a report highlighting the key areas the state government needed to focus on to promote more balanced growth. Combining the report's recommendations with some of the major themes at the conference, here are nine things that Maharashtra must do to promote even growth and jobs.

Spread growth through the state: Currently, Maharashtra's growth has been concentrated in  few places like Mumbai, Thane and Pune. The government needs to economically develop Tier II cities like Nagpur, Nasik and even smaller towns like Sangli, Miraj, Kolhapur, Amravati, Solapur etc.

Develop transport links: Greater investments in transport facilities will also help in spreading growth across the state. Where will the funds come from? Some experts at the convention thought that instead of spending huge sums on a metro project in a large city, money should be spent on smaller public transport projects in  towns. Any surplus cash could also be used to provide better job opportunities in these towns.

Develop industrial infrastructure: Along with communication, industrial infrastructure in crucial. For example, Maharashtra is one of the largest power-consuming states in India.

Greater investments in transport facilities will also help in spreading growth across the state. AFP

Arvind Singh, managing director, Maha Transco, pointed out that large generation of power by private producers has to be matched by an increase in transmission and distribution capacities through both private and public initiatives. Chief minister Prithviraj Chavan said power generation was never an issue for the state; the real problem has been with tariffs and cross-subsidising policies that have left public-sector distribution companies bleeding.

Land acquisition and environmental clearances have also been a big hurdle to development. A council of policy advisors could help in this respect.

Decentralise: A few experts thought the government needed to hive off decision making to smaller civic bodies such as Gram Panchayats to get better results.

Abhay Pethe, an urban economics and regional development expert from Mumbai University, noted that so far, Maharashtra had not decentralised powers as should have been done under a democratic system.

Improve productivity in agriculture: Farmer suicides have been a big problem for Maharashtra. In his inaugural speech at the conference, P Chavan, said the government had clearly not done enough for dryland farming and irrigation in the state.

Of course, agriculture alone might not provide high levels of income to farmers, which is why the Ficci-Yes Bank report points out the importance of getting people involved in agri-businesses like horticulture.

Develop medium, small and micro enterprises: At the Ficci conference, Chavan acknowledged that the Maharashtra government had failed to kick start small- and medium-industries in the state. The new Industrial Policy of Maharashtra rightly places emphasis on this sector. Being important for employment generation, medium- and small- scale industries must be given help in accessing funds, technical and advisory support and access to new markets.Arun Firodia, chairman, Kinetic engineering, drew attention to industries like horticulture and food processing as major hubs for development.

Improve the tourism potential: Developing tourism was recognised as a prime goal for the Maharashtra government by Ficci. Tushar Pandey, country head, strategic initiatives — government and advisory, Yes Bank, thought  eco tourism could be a good strategy; under this, locals could become stake holders in tourism projects. Except for Shirdi and Ajanta-Ellora, tourist interest has generally followed industrial development in Maharashtra. For its part, Maharashtra Tourism Development Corporation (MTDC)   has also started entering districts and resorted to micro planning in tourism in districts.

Develop skills among residents: Vijay Mahajan, chairman, Basix group, and one  the pioneers of microfinance in India, said agricultural training and developing training centres throughout the state are extremely important. The significance of building skills and imparting proper training to make good use of human capital cannot be over emphasised. 

Manufacturing: Chief minister Chavan said the state needed to act as a facilitator for private industrial investments. Uday Phadke, principal advisor (Finance), Mahindra & Mahindra, said that while Mumbai offers a conducing atmosphere for mega projects and investments, getting regulatory clearances and execution delays continue to prove problematic. The co-ordination among ministries leaves much to be desired as well. These problems must be resolved if manufacturing has to develop in the state.

 


Published Date: Jan 11, 2012 12:01 PM | Updated Date: Jan 23, 2012 16:11 PM

Tags :#Ficci-Yes Bank#Nashik#Prithviraj Chavan#Pune#ToWhatEffect#Vijay Mahajan#Yes Bank Ltd

Problems Facing Entrepreneurs and Small Businesses Essay

1884 Words8 Pages

Abstract
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