The average employment level for 40-year old firms in Mexico is double that of the employment when the enterprise is newly set up. The average productivity level for 40-year old enterprises in the U.S. was more than four times that of the productivity of an enterprise that is newly set up. In contrast, the average productivity level for 40-year old firms in India was only 60 per cent greater than the productivity of an enterprise that is newly set up. Thus, once they survive for forty years, the average 40-year old firm in the U.S. is 2.5 times (=4/1.6) more productive than the average 40-year old Indian firm. “If the firms grow beyond the thresholds that these policies employ, then they will be unable to obtain the said benefits.

Source: Economic Times July 04, 2019 07:17 UTC