Cape Town Conference: Unorganized Manufacturing in India, World Bank, 2009 (A. Narain, Day 2, Fishbowl 4)

Description
This pages contains a paper from the fourth 'fishbowl' discussion at the DCED Cape Town Conference. The theme of this session is 'Reforms that Bring Informal Firms and Transactions into the Informal Economy?'. The paper is:

Narain, Ashish, 'Unorganized Manufacturing: Facilitating Entry to the Formal Sector by Removing Obstacles to Growth and Productivity', in Aurora Ferrari and Inderbir Singh Dinghra, India's Investment Climate: Voices of Indian Business, Washington DC: World Bank, 2009.


Summary of results
This study outlines the nature of the informal manufacturing in India, before surveying critical constraints to growth by informal manufacturers. Lack of access to capital and power shortages are identified as the foremost constraints. The factors that deter enterprises from seeking loans include stringent collateral requirements, necessary documentation, and the time it takes to process their application. Energy shortages, meanwhile, actually lead firms to employ more workers, but harm firms' profitability.



Associated Activities and Documents
Synthesis documents
»	Donor Committee Conference: Business Environment Reform and the Informal Economy, Cape Town, South Africa, 12-15 April 2010