CEA calls for deregulating land laws to aid manufacturing by small players
chief economic advisor (CEA) V Anantha Nageswaran said on Monday, making a case for drastic deregulations.
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Speaking at an Exim Bank event in the capital, Nageswaran also flagged resistance from larger companies to a government policy on timely clearance of dues owed by them to small entities, including raw material suppliers.
«Look at the behavioural resistance that continues to prevail in this country, where large enterprises still look at micro and small enterprises as sources of working capital for them, rather than them being the source of working capital for micro and small enterprises,» he said.
The CEA reiterated that deregulation, including in cases of land use, would feature prominently in the next Economic Survey that would be unveiled on January 31.
SMBs won't be able to use even 20-30% of the land on the ground floor, he said, highlighting that the norms militate against optimal use of land in India.
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