Do Labour Reforms Boost the Entry Rate of New Formal Manufacturing SME in India: A State-level Enquiry

This study examines how far labour reforms help create new formal manufacturing-sector small and medium-sized enterprises (SMEs) in India, while accounting for the contributions of improved infrastructure and the trade orientation of states. The basic data source is the Annual Survey of Industries for 2009–2018. A state-level panel data set is analysed econometrically, which shows significant beneficial effects of labour reforms, particularly in regions with relatively abundant power. JEL Codes: J08, L25, L26, L60