Topic: Indian Economy and issues relating to planning, mobilization of resources, growth, development and employment.
5) Small businesses hold the greatest potential for job creation, thus a policy agenda to meet India’s steep employment challenges must enable them on priority. Elucidate.(250 words)
Why this question:
The article highlights as to how we must enable small businesses to grow since these hold the greatest potential for job creation.
Key demand of the question:
Explain the background of the current economic situation in the country and bring out the role played by small businesses; discuss the positives and negatives associated.
Elucidate – Give a detailed account as to how and why it occurred, or what is the particular context. You must be defining key terms where ever appropriate, and substantiate with relevant associated facts.
Structure of the answer:
In short set the context of the question.
Explain the following aspects in the answer body:
First discuss that India’s economy has an excessive proportion of less productive, informal micro businesses.
Relate it to the employment factor in the country.
Then discuss the need for the government to recognise the impetus that small industries have to contribute to the overall growth.
Conclude that there is an urgent need to recognise the significance of small businesses to the overall economic growth of the country.