small scale sector final
Post on 03-Apr-2018
220 Views
Preview:
TRANSCRIPT
-
7/28/2019 Small Scale Sector Final
1/25
A PROJECT REPORT ON PERFORMANCE OF
SMALL SCALE INDUSTRIES IN INDIA
(OPTION B- TERM PAPER)
SUBMITTED BY
NAVPREET GHUMAN
ROLL NO. 530
B.COM (HONS.) FINAL YEAR
UNDER THE SUPERVISION OF
AMITA CHARAN
ASSISTANT PROFESSOR
Department of Commerce
JANKI DEVI MEMORIAL COLLEGE
UNIVERSITY OF DELHI
-
7/28/2019 Small Scale Sector Final
2/25
CERTIFICATE
As a student of B.COM.(HONS.) final year I have prepared this project on "SMALL SCALE
ENTERPRISE IN INDIA ". I certify that the information contained in this report is an original work
and fully based on my understanding . It has not been submitted in part or full for any other
diploma or degree of any university. I have taken proper care and shown utmost sincerity in
completion of this project. This project is prepared in accordance with the guidelines issued by
University of Delhi.
Amita Charan Navpreet Ghuman
Mentor Student
-
7/28/2019 Small Scale Sector Final
3/25
ACKNOWLEDGEMENT
I want to give my sincere thanks and deep sense of gratitude to my mentor and respected teacher
AMITA and to all teachers of J.D.M. College for their valuable guidance, interest and constant
encouragement for fulfillment of our project. I am grateful to our college authorities for stocking a
rich collection of books and magazines in the library which has acted as great oasis of knowledge
aimed the vast deserts of our ignorance. It is a great opportunity for me to work on such an
interesting topic which would prove to be great help to me in understanding the relevance of Small
Scale Sector to Indian economy in the era of globalization .
Navpreet Ghuman
{B.com (hons) 3 rd year }
-
7/28/2019 Small Scale Sector Final
4/25
CONTENTS
S.NO. PARTICULARS PAGE NO.
1. CHAPTER 1
AIM AND OBJECTIVE OF THE STUDY5
2. CHAPTER 2
Definition of Small Scale Industries
Classification of Small Scale Industries
Regulatory bodies and regulations
The Micro, Small and Medium Enterprise
Development Act, 2006
6
6-8
8-10
10-13
3. CHAPTER 3
Research Methodology 14
4. CHAPTER 4 Role Of SSI in Indian Economy
Performance Of SSE
Issues related to SSE
Problems faced by SSE
Measures to promote SSE
Items reserved for exclusive production in
SSE
15-17
18
18-19
19-21
22
22-23
5. CHAPTER 5
Conclusion24
-
7/28/2019 Small Scale Sector Final
5/25
CHAPTER 1
AIM AND OBJECTIVES OF THE STUDY
AIM OF THE STUDY
The aim of this descriptive study is to understand the performance and status of Small Scale
Industries in India. Small Scale sector in India is considered to have huge potential which is
expected to grow and prosper with its wide range of products. It is estimated that with 40 percent
share in total industrial output and 35 percent share in exports, the small-scale industrial sector in
India is acting as Engine of Growth in the new millennium.
OBJECTIVES OF THE STUDY
The study was an in-depth study of performance of small scale industry in India. The main
purpose of the study was to investigate performance, status and potential of small scale industry in
India. For achieving this main objective several sub-objectives have been framed as discussed
below; To study the performance and status of small scale sector contributing towards
growth of India economy.
To study the employment generation opportunities and exports capacity of this
sector
To figure out the implications and problems faced by small scale sector
To analyse the Government measures taken to promote this sector.
-
7/28/2019 Small Scale Sector Final
6/25
CHAPTER 2
INTRODUCTION TO THE SMALL SCALE SECTOR
DEFINITIONS:
SMALL SCALE SECTOR
The Small Scale Sector comprises of all those industrial units which have made a smaller
investment in fixed assets and employ a smaller number of workers as compared to large scale
industrial units.
SMALL SCALE INDUSTRY
Small Scale Industries has been defined as an industrial undertaking in which the investment in
fixed assets in plant and machinery whether held on ownership terms on lease or on hire purchase
does not exceed Rs 10 million (subject to the condition that the unit is not owned, controlled or
subsidiary of any other industrial undertaking).
CLASSIFICATION OF SMALL SCALE SECTOR
Under Micro, Small and Medium enterprises Act, 2006 the small scale enterprises in India have
been further classified broadly:
Classification based on nature of enterprise:
(i) Manufacturing: Those engaged in production or manufacturing.
(ii) Services: Those engaged in providing/rendering of services.
Classification based on investment:
Both of the categories of enterprises have been further classified into micro, small and medium
enterprises based on their investment in plant and machinery (for manufacturing enterprises) or on
equipments ( those providing or rendering services).
-
7/28/2019 Small Scale Sector Final
7/25
The present ceiling on investment to be classified as micro, small or medium enterprises is as
under:
CLASSIFICATION
Investment Ceiling For Plant, Machinery or Equipments *@
Manufacturing Enterprises Service Enterprise
MICRO Up to Rs.25 lakh ($50
thousand)
Up to Rs.10 lakh ($20 thousand)
SMALL Above Rs.25 lakh ($50
thousand) & up to Rs.5
crore ($1 million)
Above Rs.10 lakh ($20 thousand) &
up to Rs.2 crore ($0.40 million)
MEDIUM Above Rs.5 crore ($1
million) & up to Rs.10 crore
($2 million)
Above Rs.2 crore ($0.40 million) &
up to Rs.5 crore ($1 million)
*Fixed costs are higher @ $1 = Rs.50 (April 2009)
(source: http://www.dcmsme.gov.in/ssiindia/MSME_OVERVIEW09.pdf )
CLASSIFICATION OF SMALL SCALE INDUSTRIES
The Small Scale Industrial Sector comprises of
i. Traditional Industries like khadi, village industries, handloom, handicrafts, etc. which use
manual power and are mostly located in rural areas, and
ii. Modern Industries like power loom that use mechanical power and modern machines.
The traditional small industries are highly labour-intensive while the modern small-scale units make
the use of highly sophisticated machinery and equipment. One special characteristic of traditional
small-scale industries is that they cannot provide full time employment to workers, but instead can
provide only subsidiary or part time employment to agricultural laborers and artisans.
-
7/28/2019 Small Scale Sector Final
8/25
Among traditional village industries, handicrafts possess the highest labour productivity, besides
handicrafts make a significant contribution to earning foreign exchange for the country.
Nowadays Indian Small-scale industries (SSIs) are mostly modern small-scale industries.
Modernization has widened the list of products offered by this industry. The items manufactured in
modern Small-scale service & Business enterprises in India now include rubber products, plastic
products, chemical products, glass and ceramics, mechanical engineering items,
hardware, electrical items, transport equipment, electronic components and equipments, automobile
parts, bicycle parts, instruments, sports goods, stationery items and clocks and watches.
REGULATORY BODIES AND REGULATIONS FOR SSEs
THE MINISTRY
The Ministry of Micro, Small and Medium Enterprises (M/o MSME) is the administrative Ministry in
the Government of India for all matters relating to Micro, Small and Medium Enterprises. It designs
and implements policies and programmes through its field organizations and attached offices for
promotion and growth of MSME sector.
The Office of the Development Commissioner (MSME) is an attached office of the Ministry of MSME, and is the apex body to advise, coordinate and formulate policies and programmes for the
development and promotion of the MSME Sector. The office also maintains liaison with Central
Ministries and other Central/State Government agencies/organizations financial institutions.
MSME provides many services through its network for small scale industries. Specialised services
of Marketing, Export promotion and International co-operation are also available through a series
of schemes and incentives.
-
7/28/2019 Small Scale Sector Final
9/25
THE INDUSTRIAL DEVELOPMENT BOARD
NABARD
NABARD was established on the recommendations of Shivaraman Committee, by an act of
Parliament on 12 July 1982 to implement the National Bank for Agriculture and Rural Development
Act 1981.
NABARD is set up as an apex Development Bank with a mandate for facilitating credit flow for
promotion and development of agriculture, small-scale industries, cottage and village industries,
handicrafts and other rural crafts. It also has the mandate to support all other allied economic
activities in rural areas, promote integrated and sustainable rural development and secure
prosperity of rural areas. In discharging its role as a facilitator for rural prosperity NABARD is
entrusted with
Providing refinance to lending institutions in finance
Bringing about or promoting institutional development
Evaluating, monitoring and inspecting the client banks
CREDITING AND FINANCING OF SSI
Financial assistance in India for MSME units is available from a variety of institutions. The
important ones are:
Commercial/Regional Rural/Co-operative Banks
SIDBI: Small Industries Development Bank of India (refinance and direct lending)
SFCs/SIDCs: State Financial Corporations (e.g. Delhi Financial Corporation)/State
Industrial Development Corporations.
Long and medium term loans are provided by SFCs, SIDBI and SIDCs. Banks also finance term
loans. This type of financing is needed to fund purchase of land, construction of factory
building/shed and for purchase of machinery and equipment.
-
7/28/2019 Small Scale Sector Final
10/25
The short-term loans are required for working capital requirements, which fund the purchase of
raw materials and consumables, payment of wages and other immediate manufacturing and
administrative expenses. Such loans are generally available from commercial banks. The
commercial banks also sanction composite loan comprising of working capital and term loan up
to a loan limit of Rs.1 crore.
LAWS AND ACTS
THE MICRO, SMALL AND MEDIUM ENTERPRISES DEVELOPMENT ACT, 2006
MSMED act was primarily established to facilitating the promotion and development and for
enhancing the competitiveness of micro, small, medium enterprises and for matters connected
therewith. The Act is operational from October 2, 2006. The MSMED Act was framed with the
following objectives:
To facilitate the promotion and development of micro, small and medium scale enterprises
(MSM enterprises); To enhance the competitiveness of MSM enterprises;
To concentrate on the related matters of MSM enterprises;
To extend the scope of benefits from SSI undertaking and ancillary industries to MSM
enterprises.
-
7/28/2019 Small Scale Sector Final
11/25
THE MSMED ACT AND ITS IMPACT
CLAUSE SALIENT FEATURESIMPACT
1. Establishment of National
Small and Medium
Enterprises Board, Max. no. of
members = 47
1.Specific representation of women
2.Mandatory quarterly meeting
Statutory Status, compact board and quarterly
meetings will address problems of SMEs
immediately to take corrective action.
2. Concept of EnterprisesClear-cut demarcation of
manufacturing/production and
rendering services
Facilitates SMEs to enter into service enterprises
aggressively.
3. Definition of EnterpriseSpecific ceiling limit for
manufacturing/production and service
enterprise definition for Medium
enterprise.
Existing small units can graduate into Medium units and
avail facilities under the act.
4. Filing of memoranda
optional for Micro and Small
enterprises in manufacturing
and service sector, Medium
enterprises in Service Sector
Replacement of registration with
memorandum
Facilitates SMEs to avail the benefits of the act
immediately after setting up of the unit.
-
7/28/2019 Small Scale Sector Final
12/25
but mandatory for Medium
enterprises in manufacturing
sector.
5.Procurement policiesNotification of preference policies by
central or State Governments for
goods and services provided by
Micro
& Small enterprise
Facilitates opportunity for supply of goods/services
without any hassles
6. Delayed Payment Penalty &
dispute resolutionPeriod of payment by the procuring
organizations 45 days Penal
interest 200% of PL
SMEs can plan their cash Flow / financial requirement.
7. Dispute Resolution
Establishment of MSE facilitation
Council;
90 days framework for dispute
resolution.
Easy financial planning and no waste of human
resources for chasing/follow up.
8. Delayed Payment
allowable deduction under IT
Act 1961
Deduction disallowed u/s 23 of
MSMED Act. [Clause 17A of tax
audit]
This will encourage procurement agencies to
ensure timely payment to SMEs.
9. Closure of Business Statutory notification of scheme for
closure.
Facilitates expedition of Liquidation.
-
7/28/2019 Small Scale Sector Final
13/25
10. Notification of guidelines or
instructions for promotion of
SMEs Funds appropriation
and release
Statutory Mandatory on all facilitating development of SMEs
ensuring fast growth.
11. Facilitating Credit Statutory Mandatory on all providing credit. Guidelines for credit for
20% on year growth
-
7/28/2019 Small Scale Sector Final
14/25
CHAPTER 3
RESEARCH METHODOLOGY
Type of Research
A descriptive research has been conducted to find out the position of Small Scale
Industries in India through secondary sources. The result is provided in descriptive
form.
Data Collection
The data has been collected from various secondary sources such as internet,
books, business magazine and web sources such as www.dcmsme.gov.in .
Some of the important referrals and books are also studied for the purpose of data
collection and relevant information on the subject matter such as
1. Indian Economy by B.K.Bhargava and Vandana Sethi.
2. Indian Economy by Uma Kapila
http://www.dcmsme.gov.in/http://www.dcmsme.gov.in/ -
7/28/2019 Small Scale Sector Final
15/25
CHAPTER 4
STATUS AND PERFORMANCE OF SMALL
SCALE INDUSTRIES IN INDIA
ROLE OF SMALL SCALE INDUSTRIES IN INDIAN ECONOMY
Micro and Small Enterprises are known as Village and Small Scale industries and
playing vital role in solving many of Indias economic problems. They hold out the
promise of improving farmers by providing them supplementary source of income.
Moreover they assure larger avenues of employments to the unemployed persons andensure more economic use of scarce capital resources. Small scale industry helps in
promoting and achieving equitable distribution of income and a balanced regional
growth. Development of this sector is advocated on the basis of many factors some of
them are described below:
PRODUCTION AND CONTRIBUTION TO ECONOMY
The small-scale industrial sector plays a crucial role in the financial viability and
economic growth of the developing economies. It contributes almost 40% of the
gross industrial value added in the Indian economy. It has been estimated that a
million Rs. of investment in fixed assets in the small scale sector produces 4.62
million worth of goods or services with an approximate value addition of ten
percentage points.
The small-scale sector has grown rapidly over the years. The growth rates during the
various plan periods have been very impressive. The number of small-scale unitshas increased from 0.87 million units in the year 1980-81 to over 3 million in the year
2000 to 3.57 million in 2003. When the performance of this sector is viewed against
the growth in the manufacturing and the industry sector as a whole, it instills
confidence in the resilience and self-reliance of the small-scale sector.
EMPLOYMENT GENERATION
SSI Sector in India creates largest employment opportunities for the Indian populace,next only to Agriculture. It has been estimated that 100,000 rupees of investment in
fixed assets in the small-scale sector generates employment for four persons. The
small-scale industries provide large scope for employment on a massive scale.
-
7/28/2019 Small Scale Sector Final
16/25
In 2001 the employment generated in this sector was 19.2 million rising to 19.96
million in 2003 and 59.46 million people were employed in this sector including agro,
rural, cottage and small scale industries as per 4th All India Census of micro, small
and medium enterprises (MSMEs).
This significantly important for a country like India which is a labour-surplus
economy, and where labour-force is increasing at a very rapid rate. Moreover, the
small-scale industries being labour-intensive industry and employ more labour per
unit of capital for a given output compared to the large-scale industries. This is
evident from the fact that the small-scale sector accounts for as much as 80% of the
total employment in the industrial sector.
The small-scale industries are also specially suited for overcoming various types of unemployment in the rural and semi-urban areas. With little capital and other
resources, mostly available locally, these industries can be set-up everywhere in the
country, even at the very door-step of the workers. For this reason the small farmer
and agricultural worker can combine their work in agriculture with that in these
industries. Further, these industries provide part-time as well as full time work to rural
artisans, women and needy people.
EXPORT
SSI Sector plays a major role in Indias present export performance. 45%-50% of the
Indian Exports is contributed by SSI Sector. Direct exports from the SSI Sector
account for nearly 35% of total exports. Besides direct exports, it is estimated that
small-scale industrial units contribute around 15% to exports indirectly. This takes
place through merchant exporters, trading houses and export houses. They may
also be in the form of export orders from large units or the production of parts andcomponents for use for finished exportable goods. It would surprise many to know
that non-traditional products account for more than 95% of the SSI exports. The
exports from SSI sector have been clocking excellent growth rates in this decade. It
has been mostly fuelled by the performance of garments, leather and gems and
jewellery units from this sector.
The product groups where the SSI sector dominates in exports are sports goods,
readymade garments, woolen garments and knitwear, plastic products, processed
food and leather products. The SSI sector is reorienting its export strategy towards
the new trade regime being ushered in by the WTO.
-
7/28/2019 Small Scale Sector Final
17/25
OPPORTUNITY
The opportunities in the small-scale sector are enormous due to the following
factors:
Less Capital Intensive
Extensive Promotion & Support by Government
Reservation for Exclusive Manufacture by small scale sector
Project Profiles
Funding - Finance & Subsidies Machinery Procurement
Raw Material Procurement
Manpower Training
Technical & Managerial skills
Tooling & Testing support
Reservation for Exclusive Purchase by Government
Export Promotion
Growth in demand in the domestic market size due to overall economic
growth
Increasing Export Potential for Indian products
Growth in Requirements for ancillary units due to the increase in
number of green field units coming up in the large scale sector.
This sector is ideally suited to build on the strengths of our traditional skills and
knowledge, by infusion of technologies, capital and innovative marketing practices.
This is the opportune time to set up projects in the small-scale sector. It may be saidthat the outlook is positive, indeed promising, given some safeguards. This
expectation is based on an essential feature of the Indian industry and the demand
structures. The diversity in production systems and demand structures will ensure
long term co-existence of many layers of demand for consumer products /
-
7/28/2019 Small Scale Sector Final
18/25
technologies / processes. There will be flourishing and well grounded markets for the
same product/process, differentiated by quality, value added and sophistication. This
characteristic of the Indian economy will allow complementary existence for various
diverse types of units.
PERFORMANCE OF MICRO AND SMALL ENTERPRISES
YEARNO. OF UNITS
(LAKHS)
PRODUCTION
(RS. in CRORES)
(At 2001-02 Prices)
EMPLOYMENT
(LAKHS)
EXPORTS
(RS. In
CRORES)
2002-03 109.49 3,06,771 263.68 86,013
2003-04 113.95 3,36,344 275.30 97,644
2004-05 118.59 3,72,938 287.55 1,24,417
2005-06 123.42 4,18,884 299.85 1,50,242
2006-07 128.44 4,71,663 312.52 NA
ISSUES RELATED TO SMALL SCALE ENTERPRISE
Small enterprises are presently seriously handicapped in comparison with
larger units by an inequitable allocation system for scarce raw materials
and imported components, lack of provision of credit and finance; low technical skill
and managerial ability; and marketing contracts. It is, therefore, essential to
develop an overall approach to remove these disabilities.
OUTPUT Vs. EMPLOYMENT
One argument is that the emphasis on employment is irrelevant, as the basic thing is
the output that the economy needs for its growth. From this angle, it is contendedthat, since the productivity of these industries is low compared to that of large
industries, the small industries simply waste the capital which is very scarce, and
which , if diverted to large industries, can produce more. From this viewpoint, small
-
7/28/2019 Small Scale Sector Final
19/25
industries are more capital-intensive. It is also argued that the labour-productivity in
the small industries is also small compared to large industries.
ADVERSE EFFECT ON CAPITAL FORMATION
It is also contended by some that small industries have unfavorable consequences
on saving and capital formation. They argue that the establishment of these
industries will, over a period of time, reduce the availability of capital for large-scale
industries with higher productivity of capital. First, it will happen because capital,
used inefficiently in the small industries, will not be available for large-scale
industries.
Second, these industries being labour-intensive, use a major proportion of the saleproceeds of output to pay workers whose marginal propensity to save is low. As a
result, a large part of their incomes will be used for consumption resulting in a lower
rate of saving and capital formation for the economy.
INEFFICIENT PRODUCTION
Another charge against these industries is that the cost of production is higher than
in the large industries, because these industries suffer from several inefficienciesNo doubt, the fact of large scale entails, what is described as economies of scale,
lowering the costs.
LARGE SICKNESS
There are two main issues in respect of sick SSIs: (i) existence of a large number of
sick units which are non-viable; and (ii) rehabilitation of potentially viable units. As far
as former is concerned, there were 1, 67,980 sick SSI units as on March 31, 2003.
These units are those that had obtained loans from banks. An amount of Rs. 5,706
crore was blocked in these units. Of these, as many as 1,62,791 units with
outstanding bank credit of Rs. 4,569 crore were identified by banks as being non-
viable. As far as the latter issue is concerned, of the 1,67,980 sick SSI units as on
March 31, 2003, only 3,626 units with outstanding bank credit of Rs.625 crore were
found to be potentially viable by banks.
PROBLEMS FACED BY SMALL SCALE ENTERPRISES
HIGH PRODUCTION COST
-
7/28/2019 Small Scale Sector Final
20/25
The Small industries, are generally as cost efficient as the large-scale industries. The
small size of plant combined with low and erratic market demand does not give rise
to such economies: these units may rather be operating at uneconomical levels
resulting in high production cost. Being cost inefficient, the small scale units often fail
to meet the competition, low cost products from the large industries and may even
be driven out of the market.
PROBLEMS OF MARKETING
The small scale industries also face the problem of marketing their products. The
small producers, running these industries, have no means of reaching the distant
urban markets due to difficulties of transport and other expenses involved in
movement of goods. They cannot adopt aggressive marketing strategies like big
industries. Thus, they cannot find market, despite good quality of their products. Lack
of proper marketing organization thus prevents the small producers to earn
remunerative prices for their products.
LOW MARKET DEMAND
The demand for goods of small scale industries is not high enough to ensure steady
income to the producers in this sector because of low quality. Thus, the products do
not find ready acceptability in the market. Market for products of small-scale is not
wide enough to assure adequate returns to producers and induce them for further
development.
PROBLEMS OF FINANCE
Like the big industrial units, the MSEs too need finance to run their operations such
as purchase of raw material, equipments, transportation of products, etc. But while
the large scale units have access to capital market and get their required credit,
small industries do not have such facilities. They very often have to borrow from
unorganized sources such as indigenous bakers, moneylenders, etc who charge
high rate of interest. The problem is more acute in case of cottage industries,
craftsmen and artisans, who have to fall back only on moneylenders and traders for
their financial needs. Thus, lack of adequate and cheap finance becomes a major
handicap for the development of this sector.
-
7/28/2019 Small Scale Sector Final
21/25
OBSOLETE PRODUCTION TECHNIQUES
The methods of production, which the small and tiny enterprises use, are old and
inefficient. The result is low productivity and high costs. There is little of research and
development in this field in the country. There is almost no agency to provide venture
capital to cover risks associated with the introduction of new technologies.
DIFFICULTY IN PROCURING RAW MATERIALS
There is another problem of raw materials which continues to plague these
industries. Raw materials are available neither in sufficient quantity, nor of requisite
quality, nor at reasonable price. Being small purchasers, producers are not able to
undertake bulk buying as the large industries can do. The result is taking whatever is
available, of whatever quality and at high price.
MEASURES TO PROMOTE SMALL SCALE ENTERPRISE
PROVIDING CREDIT FACILITIES
Institutions providing credit facility have also been set up. State Financial
Corporations provide financial assistance to small scale industries. Public sector banks have also been providing credit facility to artisans and craftsmen. National
Bank for Agriculture and Rural development (NABARD) has been extending credit,
consultancy and other facilities to village industries and agro-processing units
through various agencies.
SETTING UP ORGANISATIONS FOR PROMOTION OF MSEs
Govt. has established organizations like Khadi and Village Industries Commission
and commodity specific organizations such as Handloom Board, Cottage Industries
board, coir board etc. to help these units in purchasing raw material and machinery,
marketing of goods, technology improvements, training and learning facilities..District
Industrial centers have been set-up to provide necessary assistance for healthy
-
7/28/2019 Small Scale Sector Final
22/25
growth of the small scale industries. Small Industries Development Organizations
(SIDO) provides marketing and consultancy services.
HELPING IN MARKETING OF MSEs PRODUCTS
A large number of items used by the government in its various departments and
offices are reserved for exclusive purchase from small scale sector. Besides, govt.agencies also organize trade fairs and exhibitions of goods provided by cottage and
small industries at various places within the country as well as in foreign countries to
create demand for these products.
RESERVATION
To protect the products of small-scale industrial sector from unequal competition
from products produced by the large scale-industrial units, the govt. of India has
reserved a large no. of products which can be produced exclusively in the small
industries sector. The bigger industrial units can be permitted to produce suchproducts only if they undertake to export a minimum of 75% of total production.
ITEMS RESERVED FOR EXCLUSIVE MANUFACTURE BY MICRO AND SMALL
ENTERPRISE SECTOR (As on 30 July, 2010)
S.No. S.No.(As Per Gazette
Notification)
ProductCode
Name Of The Product
20-21 Food And Allied Industries
1 3 202501 Pickles $ Chutneys
2 7 205101 Bread3 11 21100102 Mustard Oil (Except Solvent Extracted )
4 13 21100104 Ground Nut Oil (Except Solvent Extracted)27 Wood And Wood Products
5 47 276001 Wooden Furniture And Fixtures28 Paper Products
6 79 285002 Exercise Books And Registers
-
7/28/2019 Small Scale Sector Final
23/25
Other Chemical And Chemical Products
7 253 305301 Wax Candles
8 308 314201 Laundry Soap
9 313 317001 Safety Matches10 314 318401 Fire Works
11 319 319902 Agarbattis
Glass And Ceramics
12 335 321701 Glass Bangles
33-35 Mechanical Engg. Excluding Transport Equipments13 364 340101 Steel Almirah
14 394 341004 Rolling Shutters15 402 34200602 Steel Chairs-All Types16 404 34200702 Steel Tables-All Other Types
17 409 342099 Steel Furniture -All Other Types18 428 343302 Padlocks19 447a 345207 Stainless Steel Utensils20 474 345202 Domestic Utensils- Aluminum
-
7/28/2019 Small Scale Sector Final
24/25
CHAPTER- 5CONCLUSION
SSI sector is significantly contributing to Indian economy with its less capital
intensive and high labour absorption nature. SSI sector is playing crucial role for
employment generation and rural industrialization. The promotional and protective
policies of the Indian Government have ensured the importance of this sector with its
astonishing range of products, particularly in consumer goods. However, thebugbear of the sector has been the inadequacies in capital, technology and
marketing. The process of liberalization coupled with Government support will
therefore, attract the infusion of just these things in the sector. SSI have many
inherent advantages such as exclusivity, ability to produce small order quantities
which can be used to tap new markets. What is needed is a rational policy which
offers adequate support and protection to this sector.
According to Bala Subrahmanya:
The central issue of concern for the growth of small-scale industry is how to
strengthen its competitiveness. First of all, if small industry has to thrive steadily,
infrastructural bottlenecks must be overcome to enable must be overcome to enable
it to compete on its own based on inherent potentials. And it is responsibility of
government to remove any structural bottlenecks in small industry performance
through removal of protective elements. It is essential to provide the much neededlevel playing field to small sector through infrastructural development. But
overcoming infrastructural bottlenecks for small enterprises is easier said than done.
To improve competitiveness, there is need to encourage and promote greater
research and development, in-depth market research, which largely depends on
-
7/28/2019 Small Scale Sector Final
25/25
quantum of finance available to the small scale sector. For this, credit delivery
system to SSI needs to strengthen, outputs and inputs designs need to be improved
to achieve greater acceptability and quality of SSI products. Technological
upgradation is also needed to produce better quality products at cheap rates to face
stiff competition from imports.
BIBLIOGRAPHY
Books referred-
.(2011) .Indian Economy . Publication- Sultan Chand & Sons . Bhargava and Sethi
.(2011) .Economic Development and Policy in India . Publication- Sultan Chand &
Sons . Uma Kapila
Websites-
www.dcmsme.gov.in
www.exim.indiamart.com
www.indiabudget.nic.in
www.indianblogger.com
http://www.dcmsme.gov.in/http://www.exim.indiamart.com/http://www.indiabudget.nic.in/http://www.indianblogger.com/http://www.dcmsme.gov.in/http://www.exim.indiamart.com/http://www.indiabudget.nic.in/http://www.indianblogger.com/
top related