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India: Prospects and Challenges by Dr. Raghuram Access to input and output markets – The ease
G. Rajan of access to resources plays a vital role in new
players entering a market. At the same time, the
Dr. Raghuram Rajan spoke about creating a ability to access new markets and tap into new
sustainable small and medium scale enterprise customer bases is necessary for businesses to grow.
environment in Odisha. He said job creation is a Infrastructural development plays a key role for
by-product of these small enterprises growing the small and medium scale enterprises to access
into big enterprises and he talked about the policy resources and reach out to new markets. In the
framework that is needed to create and sustain such past few years, the internet has been a boon in this
a scenario. He focussed on five aspects to facilitate direction.
the growth of small and medium scale
businesses: Marketing and quality control as inputs are
extremely important for small enterprises and the
Ease of entry and exit from market – It is very necessary certification can be done by state and
important to make it easy for business to enter and national entities along with self certification.
exit a market. The constraints of the legal system
and compliance policies prevent small businesses Land use is an important element in ease of doing
from growing and thus they remain informal. The business and it must be made easy to acquire land
current systems also make it harder for players and process necessary documents for small and
to exit and this needs to be addressed because it medium enterprises.
prevents competition, growth and improvement in
the standards of products and services.

It has been inferred that free enterprises can
combat social biases and prejudices and allow for
faster social improvement. He explained this with
examples of economies where small enterprises
have a chance to grow faster and can formally
participate in the market. India is making an
attempt at cleaning redundant policies in the last
few years which will accelerate the creation and
growth of small enterprises.