Furthermore, the entry of large industrial houses with their great financial clout into the field earlier reserved is likely to deal a severe blow to the SSI investors. Besides, capacity building of MSME Associations and support of Women entrepreneurs are the other important features of this package.
The total plan outlay of the Second Plan reached to Rs. The census report also highlighted that obtaining adequate and timely credit, especially work-capital loan is considered as the major problem in the path of MSME sector.
Besides, exports emanating from the MSME units accounts for about During his period when the Swadeshi Movement was at its zenith, some life came back to cottage industries. So far as employment is concerned it comes next only to agriculture. The small scale industries are maintaining better industrial relations between employers and employees and thus can lessen the frequency of industrial disputes.
Thus, there are numerous arguments in favour of small scale industries in the country. When the same person as a proprietor sets up two or more undertakings, each is considered to be controlled by the other.
Advancement in generic technology of computers and telecommunications. There is no reason to believe that the small-scale industries cannot survive in the face of keen competition with big industries. Most small scale industries are located near urban centres.
By the end of the Sixth Plan, production from small and cottage industries increased to Rs. Like Growth Centres, the Eighth Plan also envisaged to set up integrated infrastructure development centres for tiny units. More than 30 million people work in these industries. The sector now broadly includes not only SSI units but also small scale service and business enterprises SSSBEs and is thus referred to as the small enterprises sector.
In recent years, several policy initiatives and procedural simplification have been undertaken by the government to support the small scale sector and enhance its competitive strength. These products are mainly produced for markets outside of the villages, in large cities and for international market.
A committee has also been set up for checking the entry of large and medium scale units into the areas reserved for small scale sector. The small scale sector contributes about 40 per cent to the gross turnover in the manufacturing sector and nearly 35 per cent of total exports. Production of small articles of everyday use with the help of small machines will offer employment opportunities to many people with limited capital resources.
They have to face open competition in every sphere of activity.
Objective of all plan has been to develop small and cottage industry in the country. The Twelfth Five Year Plan policy framework is guided by the recommendations of these key committees. These industries have vast and unlimited scope in India. The priority sector status is also likely to be withdrawn.
Up to 6 June,units using power and employing less than 50 persons and those employing less than persons and using no power were considered as small-scale industries. Under this changed environments, the MSEs should achieve sustained growth by enhancing technological capabilities so as to improve the quality of products and services to global standards and also seeking ways of innovation.By the end of the First Plan, there were a total of six boards, i.e., All India Handloom Board, All India Handicrafts Board, All India Khadi and Village Industries Board, Small-Scale Industries Board, Coir Board and Central Silk Board, established, thus, covering the entire field of small-scale and cottage industries.
Various Types of small-scale industries: There are many kinds of small-scale industries in India. The manufacture of footwear, glassware, cutlery, match, pottery, metal industry, etc.
is some of the typical small-scale industries. Small Industries Development Bank of India (SIDBI) SIDBI was set up by an Act of Parliament, as an apex institution for promotion, financing and development of industries in small scale sector and for coordinating the functions of other institutions engaged in similar activities.
It commenced operations on April 2, Importance of small scale industries. Employment – inlakh persons were employed in small scale industries.
These industries and mainly based on labour intensive technology and generate more employment. Hence, keeping in view the capital deficiency in India and unemployment problems, small scale industries have special significance.
Essay on the Development of Small Scale Industries in India Article shared by The term small-scale industry was defined under the Industries. Essay on the Case of Small Scale Industries in India: There is a strong case for the development of small scale industries in a country like India.
Thus, there are numerous arguments in favour of small scale industries in the country.Download