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  • In India-Small Scale Industries Policy & Problems

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    The document discusses small scale industries in India. It provides historical context, noting small scale industries served as cottage and village industries before independence. After independence, the government under Nehru established policies to promote small scale industries. Currently, small scale industries contribute significantly to employment, exports, and the Indian economy. The government uses various measures like reservation policies, concessions, and financial incentives to promote growth of small scale industries.

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    The document discusses small scale industries in India. It provides historical context, noting small scale industries served as cottage and village industries before independence. After independence, the government under Nehru established policies to promote small scale industries. Currently, small scale industries contribute significantly to employment, exports, and the Indian economy. The government uses various measures like reservation policies, concessions, and financial incentives to promote growth of small scale industries.

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    © All Rights Reserved
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    20 views33 pages

    In India-Small Scale Industries Policy & Problems

    Uploaded by

    sagar
    The document discusses small scale industries in India. It provides historical context, noting small scale industries served as cottage and village industries before independence. After independence, the government under Nehru established policies to promote small scale industries. Currently, small scale industries contribute significantly to employment, exports, and the Indian economy. The government uses various measures like reservation policies, concessions, and financial incentives to promote growth of small scale industries.

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    © All Rights Reserved
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    of 33

    Small Scale Industries In India-

    Policy & Problems

    BBA 209 9/30/20 1


    20
    Outline

    • Small Scale Industry


    • Pre-Independence status
    • Post-Independence
    • Scope of Different Sectors:
    • Manufacturing
    • Trading
    •Service Why
    need SSI
    Measures to promote SSI

    BBA 209 9/30/20 2


    20
    SSI means small scale industries, which is an
    industrial undertaking with the investment not
    exceeding Rs.100 lakhs in plant and
    machinery. In cases of auxiliary industries the
    investment ceiling on plant and machinery is
    also Rs.100 lakhs.
    BBA 209 9/30/20 3
    20
     ACCORDING TO FISCAL COMMISSION -1950: “A UNIT OPRATING
    WITH HIRED LABOUR , USUALLY 10 TO 50 HANDS “.

     ACCORDING TO SSI BOARD -1955:” A UNIT EMPLOYING LESS THAN


    50 PERSONS IF POWER AND LAESS THAN 100 PERSONS WITHOUT THE
    USE OF POWER AND WITH A CAPITAL INVESTMENT RUPEES 5 LAKH”.

    BBA 209 9/30/20 4


    20
    SMALL SCLAE INDUSTRIES PERIOD

    SSI PRE- SSI POST


    INDEPENDANCE INDEPENDANCE

    BBA 209 9/30/20 5


    20
     Before Independence, the present small scale industry
    was meant to denote the village and the urban cottage
    industry.
     This group included a variety of industries ranging from
    manufacturing of Iron safes, locks, carpets, marble jigs,
    baskets, hand-loom cloth and the like.
     In fact, at that time the term „cottage and Small scale
    industries‟ was used in juxtaposition to large scale
    industries, which were established under the British
    patronage.
     They received encouragement and support during the
    freedom movement.
     The small scale industries found a prominent place in
    the economic programme envisaged by the Indian
    National Congress.

    BBA 209 9/30/20 6


    20
    After 1947
     Jawaharlal Nehru maintained separate entities of small scale
    industries. He was of the view that a small industry was the middle
    sector and it would overlap both the cottage and the large
    industries.
    1977 industrial Policy
     The basic policy support of SSI sector had its roots in the Industrial
    Policy Resolution 1977, laid emphasis on reservation of items.
     The reservation economically viable and technologically feasible
    products to be exclusively manufactured by small scale industry
    began with a list of 47 items which was gradually extended to too
    many products.
     At Present 812 items are in the reserved list.

     The limit on the fixed capital investment for SSI’s was Rs 7.5 lakhs
    and for ancillaries it was Rs 10 lakhs. After the Industrial Policy, the
    ceiling for investment for SSI’s was raised to Rs 60 lakhs and Rs 70
    lakhs for ancillaries .

    BBA 209 9/30/20 7


    20
    BBA 209 9/30/20 8
    20
    VILLAGEAND
    COTTAGE
    INDUSTRIES

    HANDLOOMS &
    HANDICRAFTS

    BBA 209 9/30/20 9


    20
    Person or firm that buys large
    quantity of goods from various
    producers or vendors, warehouses
    them, and resells to retailers.

    A business or person that sells goods t


    o the consumer, as opposed to
    a wholesaler or supplier, who normally
    sell their goods to another business.

    Commission agents thrive in a variety


    of businesses. International agents
    work in the export/import arena.
    Insurance and real estate agents also
    often work on a sales-based
    commission.
    BBA 209 9/30/20 10
    20
    PROFESSIONAL
    • (LAW,MEDICINE,ACCOUNTING )

    SERVICES

    COMMISSION • (TRANSPORT,

    SERVICES WAREHOUSING,REPAIR SHOP)

    PERSONAL • (FASHION SHOPS, DRY

    SERVICES CLEANING )

    BBA 209 9/30/20 11


    20
     FOR EMPLOYMENT GENRATION
     FOR BALANCE REGIONAL GROWTH
     FOR MOBILISATION OF LOCAL
    RESOURCES
     FOR EXPORT PROMOTION
     FOR CONSUMER SURPLUS
     FOR DEVELOPMENT
    OF
    ENTERPRENEURSHIP
     FOR LARGE SCALE EMPLOYMENT
    WITH LOW INVESTMENT
     FOR ATTAINING SELF
    RELIANCE AND SELF
    DEPENDANCE
     FOR ENSURING EQUAL
    DISTRIBUTION OF INCOME
    AND WEALTH

    BBA 209 9/30/20 12


    20
     It contributes Production (Rs. '000 crores) at
    almost 40% of the
    gross industrial 1993-94 prices
    value added in the 300000
    Indian economy.
    250000

     It has been
    estimated that a 200000

    million Rs. of 150000


    investment in fixed Production (Rs. 000'

    assets in the small


    crores) at 1993-94
    100000 prices
    scale sector
    produces 4.62 50000
    million.
    0

    BBA 209 9/30/20 13


    20
    Rural
     Non-metallic products
    contributed 22.7% to employment
    generated in rural areas. Food
    Products accounted for 21.1%,
    Wood Products and Chemicals and
    chemical products shared
    between them 17.5%.
    Urban
     As for urban areas, Food Products
    and Metal Products almost equally
    shared 22.8% of employment.
    Machinery parts except electrical,
    Non-metallic mineral products,
    and Chemicals & chemical
    products between them accounted
    for 26.2% of employment.

    BBA 209 9/30/20 14


    20
    Punjab(5.6%) Tamil Nadu
    (14.5%)

    Karnataka Maharashtra
    (6.7%) (9.7%),

    Uttar
    Gujarat(7.6%) Pradesh(9.5%)

    West
    Bengal(8.5%)

    DATA REALISED BY SIDO

    BBA 209 9/30/20 15


    20
     SELF ACTUALISATION
     ECONOMIC INDEPENDENCE
     SELF IDENTIFICATION AND SOCIAL STATUS
     INCREASE CONFIDENCE
     SELF RESPECT

    BBA 209 9/30/20 16


    20
    PSIEC Ltd. helps creative and skillful
    artists in Punjab by selling their
    handicrafts in the Showrooms at
    various places in India. It owns a
    chain of emporia which is famously
    called Phulkari in the major cities of
    Punjab (Amritsar, Ludhiana,
    Jalandhar, Patiala), Chandigarh,
    Delhi and Kolkata. Phulkari
    Showrooms are a home to the best
    of the handicrafts in the world. Visit
    any Showroom near you and you will
    be amazed at the creativity in
    everything they make- carpets,
    furniture, textiles and many
    household items like crockery

    BBA 209 9/30/20 17


    20
    BBA 209 9/30/20 18
    20
    S. NO PRODUCT GROUP MAIN DESTINATION

    1 READYMADE GARMENT USA,WEST ASIA,NORTH AFRICA


    2 SPORTS GOODS UK,USA,GERMANY
    3 SPICES EAST ASIA, UNION ,NORTH AFRICA
    4 LEATHER &LEATHER ITEMS GERMANY , UK, ITALY,USA,FRANCE
    5 WOOL& WOOLEN KNITED GARMENT EUROPE,BANGLADESH ,JAPAN ,SHRI
    LANKA , BHUTAN ,
    6 PROCESSED FOOD ITEMS EUROPE,BANGLADESH ,JAPAN, USA
    7 TABACCO AND TABACCO ITEMS EAST EUROPE
    8 ELECTRONIC ITEM AND COMPUTER USA , UK , HONGKONG UAE,JAPAN
    SOFTWARE
    9 CASHEW ITEM USA ,UK , JAPAN ,NEATHERLAND
    1 0
    7BBA 209 9MARIENE PRODUCT
    / 25/201 BBA 209
    9/30/20 UK,USA,GERMANY
    19
    20 EUROPE,BANGLADESH
    BBA 209 9/30/20 20
    20
    RESERVATION
    POLICY

    CONCESSION
    PURCHASE
    IN CENTRAL
    ASSITANCE
    EXCISE

    SALE TAX
    SIDBI EXEMPTION

    Role ofgovernmentfor
    promotingssi

    SUPPLYOF
    TCO’S RAW
    MATERIAL

    MARKETINF FINACIAL
    ASSITANCE INCENTIVE

    INDUSTRIAL
    ESTATES

    BBA 209 9/30/20 21


    20
    INDUSTRIAL
    INDUSTRIAL INDUSTRIAL INDUSTRIAL INDUSTRIAL INDUSTRIAL
    POLICY
    POLICY POLICY POLICY POLICY POLICY ON
    PACKAGE
    RESOLUTION RESOLUTION RESOLUTION RESOLUTION SSIS 2004-
    FOR SSI
    1948 1956 1977 1991 05
    2001-02

    BBA 209 9/30/20 22


    20
    BBA 209 9/30/20 23
    20
    BBA 209 9/30/20 24
    20
     LOAN UPTO RS 5 LAKH TO ALL SSI UNITS WAS
    ANNOUCED BY RBI IN YEAR 2000.LATER IN 2002
    THE LOAN LIMIT WAS INCREASE TO RS 15 LAKH.
    (WITOUT TAKING ANY COLLATERAL SECURITY )

     OPEN ATLEAST ONE BRANCE IN EVERY DISTRICT


    WHERE SSI UNITS HAVE CLUSTER
    (417 SPECIAL;ISED BRANCES OPRATING IN THE
    COUNTRY AT THE END OF MARCH 2006)
    BBA 209 9/30/20 25
    20
     RBI ISSUED DETAILED GUIDELINES TO
    SCHEDULED COMMERCIAL BANK FOR TIMELY
    ASSISTANCE TO POTENTIALLY VIABLE SSI
    UNITS AT REDUCED RATE IN 2002.

     RBI ADVISED SOFT LOAN ASSISTANCE TO


    WOMEN ENTREPRENEURS BESIDE USUAL TERM
    LOAN IN SSI, TINY AND SERVICE TO PROMOTE
    WOMEN ENTREPRENEURS.

    BBA 209 9/30/20 26


    20
    NATIONAL SMALL INDUSTRIES CORPORATION LTD. (NSIC)

    SMALL INDUSTRIES DEVELOPMENT ORGANIZATION (SIDO)

    SMALL INDUSTRIES DEVELOPMENT BANK OF INDIA (SIDBI)

    SMALL INDUSTRIES –SERVICE INSTITUTE (SISI)

    SMALL INDUSTRIES DEVELOPMENT CORPORATION (SIDC)

    TECHNICAL CONSULTANC ORGANISATION (TCOs)


    BBA 209 9/30/20 27
    20
    ADVANTAGES OF ESTABLISH SSI
    EMPLOYMENT
    GENRATION

    MAKE USE OF
    INDUSTRIAL WASTE

    MEETS THE DEMAND


    OF THE MARKET ADVANTAGES
    OF ESTABLISH
    SSI REDUCESREGIONAL
    DISPARITY

    SHARE IN NATIONAL
    INCOME

    EXPORT PROMOTION

    SOCIAL ADVANTAGES

    MOBILIZATION OF
    LOCAL RESOURCES

    BBA 209 9/30/20 28


    20
    INTERNAL EXTERNAL
    PROBLEMS PROBLEMS

    FAULTY
    LOCATION
    PLANNING

    POOR PROJECT POWER


    IMPLEMENTATION PROBLEMS

    POOR
    INPUT
    MANAGEMENT

    INADEQUATE
    MARKET
    FINACE
    PROBLEMS
    PROBLEMS

    LABOUR
    GOVT. POLICY
    PROBLEMS

    BBA 209 9/30/20 29


    20
    SEED BED REFERS TO
    PREPARING THE SOIL
    FOR SOWING OF SEEDS
    FOR A GOOD CROP. AS
    IT PROVIDES CONDUCIVE
    CONDITIONS FOR THE
    DEVLOPMENT AND
    GROWTH OF
    ENTREPRENEURS

    E.g:-AMUL,TOPS,VARDHMAAN, HIMALYA.PVT.LTD
    BBA 209 9/30/20 30
    20
     TO SUM UP WE CAN SAY THAT SSI SERVES AS
    A SEED BED OF ENTREPRENEURISHIP AS IT
    PROVIDES CONDUCIVE CONDITIONS FOR THE
    DEVLOPMENT AND GROWTH OF
    ENTREPRENEURS . SMALL ENTREPRISES
    REQUIER LOW INVESTMENT AND SIMPLE
    TECHNOLOGY AND USE LOCAL RESOURCES
    TO MEET LOCAL DEMANDS THROUGH
    PERSONAL CONTACTS.

    BBA 209 9/30/20 31


    20
    BBA 209 9/30/20 32
    20
    BBA 209 9/30/20 33
    36
    20

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