Economic Development

Choose the Correct Answer

Correct Answer : Option c

Explanation
Mittelstand is a German word that roughly means the medium industry. As per the Federation of German Industries (BDI), the Mittelstand is often described as the heart of Germany’s economy, as mid-sized firms account for the largest share of the country’s economic output, employ about 60 percent of all workers, provide crucial training, and contribute significantly to corporate tax revenues in Germany. The Economic Survey 2024-25 refers to the MSME segment as India’s 'Mittelstand'

Statement 1, 2 and 3 correct: Economic Survey 2024-25 suggests various measures to make India’s ‘Mittelstand’ like Europe’s:
1. Systematic deregulation and policy actions at the level of states and local governments.
2. Reducing compliance burden on businesses like rationalising parking norms to reduce land loss in industrial and commercial plots, reducing electricity tariff markup for industrial users, increasing the validity of fire NOC for low and moderate-risk buildings, etc.
3. Removing prohibitions on women from working in factory processes. Governments impose these prohibitions given the dangerous nature of the processes. However, inter-state comparison and scientific literature indicate that these prohibitions are enforced without evidence of special health risks to women workers. These prohibitions exclude women from high-paying jobs, making the prohibitions counterproductive.
4. Setting legal safeguards for penalties and enforcement, adding safeguards to reduce chances of arbitrary administrative actions.
5. Applying risk-based regulation and increasing the role of private parties in building approvals and inspections.