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As per the 5th Economic Census, of the 8.3 million enterprises engaged in manufacturing, 5.1 million were self-employment units, and most were in rural areas. 3.6 million of them do not use power for manufacturing. Of the units that employ hired workers, more than half do not use power.  While credit is definitely one of major factors for low productivity of manufacturing enterprises, others include absence of skill development, lack of entrepreneurial expertise in terms of basic requirements like accounting, lack of connectivities to markets, and possibly small size of local markets. It is indeed unfortunate that due to absent organised sector jobs, workers have to resort to such low-productivity livelihood options.

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Sharmila Kantha , India 21/01/2013 21:17:32

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