What an observation! Dr Man Mohan Singh does not understand Indian economy? Ask people he taught. And ask people who worked with him. Or, ask Prime Minister(s) who worked with him.
1) The product list that Small Scale Industries try to manufacture are not reserved for them. And naturally, they find it difficult to market against large industries.
In Delhi, Mumbai etc. , many SSI units have come up with BIG brands over the years. But in small towns, the entrepreneurs lack the "competitive spirit" and take "defaulting on loan" for granted. This is why SSI units are failing.
2) We need large number of NGO's to educate small time farmers create self help groups and in turn create awareness of i) Group Buying to decrease the input cost and ii) Group selling to develop "better bargaining power"
3) Subsidy in agriculture needs to go beyond some point and our farmers got to be competitive. Once they develop this attitude I am sure they would not need any subsidy. Ofcourse it's easier said than done. To bring about this change I guess again NGO's and Self-help group need to play a major role.
4) BSE index reflects overall growth in economy, not just in farm sector.
Infact, if Govt. tilts towards farmers then there will be an anti-resrvation" like stir by our urbane folks.
NOTE : Fortunately, India ( by chance ) did not get a politically-hardened Prime Minister at this time. Infact, we badly needed economic saavy PM to take advantage of Growth potential of
