Topics Covered:
- Effects of liberalization on the economy, changes in industrial policy and their effects on industrial growth.
Enterprise Development Centres (EDCs)
What to study?
For Prelims and mains: What are EDCs, need and significance.
Context: Union micro, small and medium enterprises sector (MSME) ministry is planning to launch enterprise development centres (EDCs) in every district.
What are EDCs?
Aimed at developing a cadre of indigenous entrepreneurs in the MSMEs, the EDCs will be similar to incubators for start-ups.
They shall be run by special purpose vehicles in partnership with the private sector, business management organisations, local industry associations.
Key features, roles and functions of EDCs:
- Offer “enterprise development courses, vocational guidance and skill development for budding entrepreneurs”.
- Have “enterprise clinics” for struggling firms, which the government hopes will reduce the number of small businesses falling into a debt trap financed by bank loans.
- Offer credit facilitation and syndication, export promotion and supplier inclusion.
- Incentives and loans by the government for the sector will also flow through the EDCs, after determining the capabilities of the firm through set parameters.
Sources: the Hindu.
