WTO implication on productivity of smes in India – An empirical study Dr. Mahesha M.*, Kumar Sanjeev** *Assistant Professor of Economics, University of Mysore, Manasagangothri, Mysore. **Student, Dos in Economics and Coperation, University of Mysore, Manasagangothri, Mysore Online published on 3 November, 2012. Abstract Small Medium Enterprises sector in India has acquired a prominent place in the socio – economic development of country during the past 64 years. SMEs constitute 95% of industrial units in country, contributing 45% of the total industrial output and 40% of direct exports. According to the latest statistics there are about 26 million lakhs SMEs units in India, employing about 59 million people which is the second highest employment sector next to agriculture. The economic liberalization and WTO regime has brought a drastic change in the field of SMEs sector in the country, in the era of globalization promotional measures have changed. Now, effective of supply of inputs has been given importance instead of incentives and concessions. With the formation of WTO, virtually all countries in the world making efforts to become the member of it, the business enterprises synchronize them self with the transformed new World Economic order. They have to think their operation not in terms of national level but also in terms of global level competitiveness and acceptability. This is applicable not only to the big business enterprises but also to small and medium enterprises. In other word, the impact of WTO is all pervasive and every individual and business entity has to prepare them to adjust to new legal, social, economic and operating environment. This study examines the impact of WTO regime on Total Factor Productivity Growth in Indian Small Enterprises sector. The TFP growth is estimated by applying Cobb- Douglas(C-D) production function model on the time series data for the period of 1973–74 to 2009–10. Top |