The O-Ring Theory owes its name to the National Aeronautics and Space Administration disaster in 1986, involving the space shuttle Challenger. However, the O-ring theory would look at the problems faced by Indian and indeed all developing-country MSMEs differently. If the O-ring theory is true, the more complex the production process, the costlier each mistake. If this were true, the O-ring production theory would have deeper implications for smaller firms in countries such as India. What are the policy implications of such an application of the O-ring theory to MSMEs in India?

Source: Mint October 21, 2019 17:26 UTC