'Dwarfs responsible for holding back jobs'
Dwarfs are defined as small firms that do not grow beyond their small size, yet they dominate the Indian economy and hold back job creation and productivity, the Economic Survey said on Thursday.
"While dwarfs account for half of all the firms in organized manufacturing by number, their share in employment is only 13.3 per cent. In fact, their share in Net Value Added NVA is a miniscule 4.7 per cent despite dominating half the economic landscape, " the survey said.
The survey said the firms that are able to grow over time to become large are the biggest contributors to employment and productivity in the economy.
In contrast, dwarfs that remain small despite becoming older remain the lowest contributors to employment and productivity in the economy.
The survey noted that firms in India do not grow enough to create the necessary jobs and productivity in the economy. The Survey report suggested incentivising infant firms, i.e. firms less than ten years of age.
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.
RECOMMENDED STORIES
lok-sabha-elections-2024-final phase-7 voting-date-last day to vote general election timings-states-seats-key-candidates-constituencies-ls-polls-general-election-schedule-time-table-results-date
From Axis to IDFC First - These bank stocks can give bumper returns in 3-4 weeks – Check target price and stop loss
Rules Changing from June 1: Aadhaar card update, driving license, LPG price and others - Check Full List
Central Railways' 63-hour mega block to hit Mumbai local train services, check dates and other details
SBI Senior Citizen FD Interest Rates 2024: What Rs 2 lakh, Rs 4 lakh, and 6 lakh, and Rs 8 lakh investments will give you in 1-, 3-, and 5-year FDs
Gold and Silver rate today (May 30, 2024): Precious metal futures trade in red; yellow metal near Rs 72,000, white metal falls by nearly Rs 1,500
09:26 AM IST