The nexus between industrialization and environment: A case study of Indian enterprises

India’s rapid industrialisation growth in small and large enterprises has had its impact on the environment; this has now become a major concern to the economy. The government, concerned about economic development and raising the standard of living of its people, has actively supported the development of the small enterprise sector. Due to their labour intensity and importance in generating employment opportunities for the less well‐off members of Indian society, they have been encouraged and given assistance by the Indian government. However, small enterprises tended to be the worst polluters and, as the findings indicated, gave the least attention to environmental issues as part of their operations. Reasons for not installing pollution‐control equipment were related to the fact that such expenditure did not contribute to the bottom line. Although existing environmental legislation is similar to that in industrialised countries, i.e. they all serve the same purpose of protecting the environment, laxity of enforcement and corruption have generally prevented effective regulation of environmental pollution. This paper compares a sample of small and large enterprises in two of the most highly industrialised states in India, to determine whether there were any significant differences in the way they approach environmental issues. Some recommendations are suggested.