We cannot depend only on a few large industrial houses and capitalists for driving our industrialisation process. The employment-intensive nature and the greater regional spread of SMEs make them an attractive option for industrial growth'', said Dr Manmohan Singh during the inauguration of the new campus of the Institute for Studies in Industrial development in Delhi earlier on May 1.

The institute was founded by former prime minister Chandra Sekhar. The provocation for the prime minister's comment has been the news reports that Indian billionaires operated in oligopolistic markets in sectors where the government had given them special privileges. In a rare show of candour Dr Singh said: ''this sounds like crony capitalism. Are we encouraging crony capitalism? Is this a necessary but transient phase in development of modern capitalism in our country?''

He was keen to understand if there is enough being done to protect consumers and small businesses. Dr Singh was also emphatic that the small and medium enterprises should be protected from the consequences of such a restrictive environment and given a larger role in the industrialisation process as the SME sector creates more employment and hence is more inclusive.

The prime minister referred to the persisting regional imbalance in industrial development and urbanisation in the country, more to do with the north and east of the country. Dr Singh also wondered if the SME sector growth is being impeded by the labour laws. ''If the labour laws are restricting the growth of the SME sector then we need to find out where and how do labour laws impede growth. To help the farm worker get employment in industry how do we create more unskilled jobs along with the skilled jobs'', the prime minister asked.

Source: The Financial Express