Even before the 2007 global financial crisis, micro, small, and medium enterprises (MSMEs) in India had already been burdened by numerous systemic constraints, including limited institutional credit, high-cost borrowing, weak marketing facilities, poor infrastructure, technological obsolescence, and a perception that they are high-risk enterprises.
In 1998, the government of India launched the National Highways Development Project (NHDP) to upgrade key arteries of the national highways network and relieve the system’s chronic capacity constraints that had long been adversely affecting the economy.
Limited financial resources for upkeep and more than 10 years of security issues in the lead−up to this program resulted in deteriorating roads, bridges, and water supply facilities in the state of Jammu and Kashmir in northeastern India.
At project appraisal in 2000, Kolkata had severe environmental problems, a high proportion of poor people, a municipal corporation that had progressively implemented urban governance reforms and showed a willingness to continue doing so, and the potential to serve as a useful model for other large municipalities.
Until 2009, the small, remote state of Mizoram in India’s northeast region, had a weak economic base and poor infrastructure. Improving this condition was contingent on several factors, not the least of which was a strong fiscal position of the state. Due to substantial grants from the central government, Mizoram attained a revenue surplus during most of 2003−2009.
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