SMALL SCALE INDUSTRIES

ASPECTS TO BE COVERED

Definition

Classification

Norms

Contribution to Indian economy

DEFINITIONYEAR UNIT INVESTMENT

1955 SSI 5 Lakhs

1966 SSIAU

7.5 Lakhs10 Lakhs

1975 SSIAU

10 Lakhs15 Lakhs

1980 SSIAU

20 Lakhs25 Lakhs

1985 SSIAU

35 Lakhs45 Lakhs

1991 SSIAU

60 Lakhs75 Lakhs

1997 SSI 3 Crores

1999 SSI 1 Crores

CLASSIFICATION

MANUFACTURING

- Village and cottage industries

- Handlooms and handicraft

- Modern SSI

TRADING

- Wholesale

- Retail

- Commission agents

SERVICES

- Professional Services

- Commercial Services

- Personal Services

• Foreign Direct Investment Approval

• NRI Investment Approval

• Foreign Exchange Regulation

• Environment Regulations

• Income Tax

NORMS FOR THE SSI

• Corporate Tax

• Excise Duty

• Sales Tax

• The Industrial Development and Regulations (IDR) Act, 1951

• Workmen’s Compensation Act

• Employment of Women

NORMS FOR THE SSI

• Payment of Gratuity Act

• The trade Union Act

• The Air and Water Pollution Act

• Environment Protection Act

• The Industrial Disputes Act

NORMS FOR THE SSI

1. Production contributes almost 40% of the gross industrial

value added

number of small-scale units - increased from an estimated 0.87 million units in the year 1980-81 to over 3 million in the year 2000.

CONTRIBUTION OF SSI IN INDIA

2. Employment

India – Labor intensive country

Self employment

Employment to farmers

Constitutes 75% of the total employment

3. Exports Export promotion Reducing pressure on the BoP Contributes 40 – 45 % of Indian exports

4. Opportunities Less Capital Intensive

Extensive Promotion & Support by Government

Reservation for Exclusive Manufacture by small scale sector

Machinery Procurement Raw Material Procurement Manpower Training Technical & Managerial skills