44209410 small scale industries in india itee

7/31/2019 44209410 Small Scale Industries in India Itee

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using power with

less than

50 employees

not using power

with the

employee strength

being

more than 50 but

less than 100

SSIs

1950


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YEAR INVESTMENT LIMITS1960 Upto Rs 5 lacs in Plant & Machinery

1966 Upto Rs 7.5 lacs in Plant & Machinery

1975 Upto Rs 10 lacs in Plant & Machinery



1991

Upto Rs 60 lacs in Plant & Machinery


1999

Upto Rs 100 lacs in Plant & Machinery


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CLASSIFICATION OF SSIs

TRADITIONAL

MODERN

KHADI

HANDLOOM

VILLAGE INDUSTRIESHANDICRAFTS

SERICULTURE

TV sets

ELECTRONICS

CONTROL SYSTEMSANCILLARY INDUSTRIES


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PRODUCTION

EMPLOYMENT

EXPORT

OPPORTUNITIES

WELFARE PROMOTING.


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Contributes almost 40% of the gross industrialvalue.

The small-scale sector has grown rapidly overthe years. The growth rates during the variousplan periods have been very impressive. Thenumber of small-scale units has increased froman estimated 0.87 million units in the year 1980-81 to over 3 million in the year 2000.


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Creates largest employment opportunities forthe Indian populace, next to Agriculture.

It has been estimated that Rs. 1 lakh ofinvestment in fixed assets in the small-scalesector generates employment for four persons.

Food products industry has ranked first ingenerating employment, providingemployment to 0.48 million persons (13.1%). Thenext two industry groups were Non-metallicmineral products with employment of 0.45million persons (12.2%) and Metal products with0.37 million persons (10.2%).


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0%

10%

20%

30%

40%

50%

60%

70%

80%

TRADITIONAL MODERN

EMPLOYMENT

OUTPUT

56%

13%

33%

74%


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33% of the Indian Exports is contributed by SSI Sector.

non-traditional products account for more than 95% of the SSIexports.

mostly fuelled by the performance of garments, leather andgems and jewellery units from this sector.

The product groups where the SSI sector dominates in exports,are sports goods, readymade garments, woollen garmentsand knitwear, plastic products, processed food and leatherproducts.


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FACTORSLess Capital IntensiveExtensive Promotion & Support by

GovernmentReservation for Exclusive Manufacture by

small scale sectorFunding - Finance & Subsidies

Machinery Procurement


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Raw Material Procurement

Manpower Training

Technical & Managerial skillsTooling & Testing support

Reservation for Exclusive Purchase by

Government

Export PromotionGrowth in demand in the domestic market size

due to overall economic growth

Increasing Export Potential for Indian products


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Fashion Technology

Information Technology

Design Technology

Health Technology

Bio Technology


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Increases income levels.

Equitable distribution of income.

Reduction of regional disparities.

Preservation of inherited skills.


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Year SSI Sector Growth Rate Total Industrial SectorGrowth Rate

2000-01 8.04 5.00

2001-02 6.06 2.70

2002-03 7.68 5.70

2003-04 8.06 6.09

2004-05 9.96 8.04

Source:SIDO Half Century by DCSSI, Govt. of India 2004 and Annual Report of the Ministry of

SSI 2005-06

CO R GRO R S


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0

1

2

3

4

5

6

7

8

9

10

2000-

01

2001-

02

2002-

03

2003-

04

2004-

05

SSI

SSI

INDUSTRY

COMPARATIVE GROWTH RATES

Source: SIDO Half Century by DCSSI, Govt. of India 2004 and Annual Report ofthe Ministry of SSI 2005-06

8.04

56.06

2.7

7.68

5.7

8.06

6.09

9.96

8.04


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SSI units : 12.3 million

Employment generated in SSIs: 29.5 million

Production : At current PricesRs. 4762.01 billion

Exports : Rs. 1215 billion

SSI account:

Industrial Production : 40%Exports : 35% (50% of Direct &

Indirect)GDP Share : 7%

Ownership pattern :

Proprietorships : 78% Partnerships : 16%

Corporate & Others : 6% Industrial Units : 96%

Service Enterprises : 3%

Ancillary Units : 1%

Produces Diverse range ofproducts (more than 8000-consumer items, capitalgoods and intermediates)


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OUTPUT vs EMPLOYMENT

ADVERSE IMPACT ON CAPITAL FORMATION.

INEFFICIENT PRODUCTION

LARGE SICKNESS.

SEVERAL DIFFICULTIES.


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AIMA Impact AssessmentIMPEDIMENTS TO GROWTH

Problems Faced by SSIs as Barriers to Growth

Market Related 70%

Finance Related 25%

Government Policy Related 12.78%

Power Related/Infrastructure 14.0%

Technology 14.60%


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CREDIT RATING SCHEME

MARKETING ASSISTANCE SCHEME

TECHNICAL ASSISTANCE MEASURES FOR EXPORT PROMOTION

INFRASTRUCTURE DEVELOPMENT

ENTREPRENEURSHIP ANK SKILL DEVELOPMENT


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INDIAN ECONOMY by RUDDAR DATT AND K.P.M.SUNDHARAM

INDIAN ECONOMY by A.N. AGRAWAL

ESSENTIALS OF BUSINESS ENVIRONMENT BY K.ASWATHAPPA

Websites:

http://indiabudget.nic.in

http://dcmsme.gov.in/ssiindia
http://dcmsme.gov.in/ssiindiahttp://dcmsme.gov.in/ssiindia


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44209410 small scale industries in india itee

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