Table Of ContentINDIA
UNINC.
Praise for India Uninc.
This book provides a much needed analysis of India’s vast non-corporate sector. Vaidyanathan offers an
excellent overview of previous debates, and writes with clarity and insight on the trends and reforms that
have touched this sector, how people within it cope, and what more needs to be done.
Nandan Nilekani, Chairman, UIDAI
Although, the Non-Corporate sector occupies a large space in our Economy, it receives little attention. This
book brings out the travails of this sector in terms of poor credit availability and dealing with corrupt
government agencies. It provides a new perspective to experts who are otherwise focussed on capital
markets and those with access to organised banking.
Sucheta Dalal, Editor, Money Life magazine
At a time when Finance Ministers seem to think that attracting foreign investment is the only required
reform, Prof Vaidyanathan’s book is a breath of fresh air. He is absolutely right in saying that the non-
coporate sector in India is among the most dynamic, yet least known and most neglected of sectors. It
urgently needs faster clearances, less red tape and more credit.
Swaminathan S. Anklesaria Aiyar, Consulting Editor, The Times of India
The beam of a searchlight on a sector we hardly look at—a sector that, Professor Vaidyanathan teaches us,
has been and can be one of the most powerful sources of growth in our country.
Arun Shourie, Former Minister, Government of India
The Non-corporate sector high share in national income, in savings, GDCF, in manufacturing in service
sectorin taxation, in credit off take etc. makes it an engine of our economic growth and hence regrettably
not adequately focused… Therefore, Professor Vaidyanathan has done yeoman service to the intellectual
community by providing a recipe for rectifying the situation and this is timely.
Dr. Subramaniam Swamy, Former Commerce Minister, Government of India
Non-Corporate India makes up around 45% of our GDP and provides employment for the majority of our
population. Sadly they are not part of any policy, left to fend for themselves and most often at the receiving
end of the inspector raj and State tyranny! For the first time Prof Vaidyanathan has explained their existence
in a lucid manner pointing out the need for good policy to enable their growth and contribution to
employment.
T.V. Mohandas Pai, Chairman, Aarin Capital Partners
This book is from the other India perspective—or the real India, the unknown India and the India that
sustains the Indian economy and providing employment and livelihood to ten times the employment that
organised private sector provides.
S. Gurumurthy, Senior Journalist
I would choose India’s next tryst with destiny is about the non-corporate sector. This book wonderfully
synthesizes the puzzle.
Manish Sabharwal, Chairman, Teamlease Services
R. Vai dyanathan has established with surgical precision that the most dynamic elements in our society are
small entrepreneurs who remain unsung heroes.
Jaithirth (Jerry) Rao
Too often, private enterprise is equated with the corporate sector. Numbers will show this isn’t true and
much of industry and service sector growth since 1991 has been driven by the MSME sector…. India’s
growth story is about unincorporated India…. Professor Vaidyanathan should be complimented for bringing
this sector and its three kinds of problems, entry, functioning and exit, into the discourse.
Bibek Debroy, Economist
INDIA
UNINC.
Prof. R. Vaidyanathan
westland ltd
61 Silverline Building, 2nd floor, Alapakkam Main Road, Maduravoyal, Chennai 600 095
No. 38/10 (New No.5), Raghava Nagar, New Timber Yard Layout, Bengaluru 560 026
93, 1st Floor, Sham Lal Road, New Delhi 110 002
First published by westland ltd 2014
First ebook edition: 2013
Copyright © Prof. R. Vaidyanathan 2014
All rights reserved
ISBN 978-93-83260-56-0
Typeset by Ram Das Lal
This book is sold subject to the condition that it shall not by way of trade or otherwise, be lent, resold,
hired out, circulated, and no reproduction in any form, in whole or in part (except for brief quotations
in critical articles or reviews) may be made without written permission of the publishers.
Dedicated to the memory of my parents
Shri. S. Ramamurthy and Shrimathi R. Balambal
who imparted knowledge and culture to me
Contents
	 Foreword 	
	 An Introductory Note 	
	 Introduction 	
Section 1 — India Uninc.: Dominant Role in the Economy
1.& I#N9D; IA UNINC.: Understanding the Terminology 	
2.& L#9ar;gest Contributor to the National Income 	
3.& S#i9g;nificant Role in the Service Sector 	
4.& L#9o;w Profile, Big Savers 	
5.& P#r9e;datory State, Pauper Households 	
6.& I#n9d;ia Uninc. and Capital Formation 	
Section 2 — Travails of the India Uninc.
7.& G#9ro;wth Drivers without benefit of reforms 	
8.& F#D9;I in Retail Trade: Fact and Fiction 	
9.& T#9h;e Bias against the Self-Employed 	
10. &T#h9e ;Sorry Saga of Contract Enforcement 	
Section 3 — Credit Delivery to India Uninc.
11. &B#a9n;k Lending and Non-corporate Sector 	
12. &T#h9e ;Critical Role of the Non-Banking Financial Sector [NBFS] 	
Section 4 — Taxation and Bribery
13. &T#ax9a;tion: Coverage Issues 	
14. &B#ri9b;ery and Corruption 	
Section 5 — Social Security for the Self Employed and
the Role of Gold
15. &Fo#o9l;ish Governments and Smart Women — Role of
Gold in our economy 	
16. &D#e9m;ography is Destiny 	
17. &R#e9v;erse Mortgage as Old Age Security 	
18. &Sa#v9i;ngs or Consumption Driven Society 	
Section 6 — Stock Markets: Role in our Economy
19. &St#o9c;k Markets: Are they Barometers? 	
20. &T#h9e ;Indian Financial Markets: A Cul-De-Sac? 	
Section 7 — Caste and India Uninc.
21. &R#e9se;rvations: Strong Policy and Weak Database 	
22. &Jo#b9 ;reservations: Make them Entrepreneurs instead 	
23. &In#d9i;a Growth: The untold story — Caste as social capital 	
Section 8 — Miscellaneous Musings & Conclusions
24. &T#h9e ;NGO Sector 	
25. &D#e9c;line of the West 	
26. &A#rt9 ;of Giving: Warren Buffet to be told 	
27. &L#ev9e;raging on the Mobile Phone Revolution 	
28. &T#im9;e to Say Goodbye to the World Bank 	
29. &Sp#o9r;ts in India — BCCI the largest Uninc. 	
30. &B#o9ll;ywood as Uninc. 	
31. &C#o9n;clusion 	
	 Acknowledgements 	
	 References 	
	 Index 	
Description:While the nation s newspapers, journals, business magazines, TV channels and the internet continue to churn out reams, airtime and gigabytes of information about India s business houses India Inc. in this one-of-its kind book, Prof. R. Vaidyanathan delves deep into India Uninc. and presents a persua
